It's important to realize that with the changes that are being proposed regarding the SR and ED tax incentive overall, there's a spending side as well. Budget 2012 sets out $1.1 billion in new spending for R and D and also makes available $500 million for venture capital.
It's important to recognize that the Jenkins panel suggested that Canada's balance between direct and indirect spending was skewed too far to the side of indirect support through the tax system. The plan that's laid out in budget 2012 rebalances it by removing some of that tax support in favour of putting the direct spending in place.