The argument is the lever that the government investment is and how then that levers significant private sector investment. I'll put it in very simple terms.
We'll have a company that's looking to continue to develop an existing world product mandate it has here in Canada. Let's use the example of an American-owned subsidiary that's been established here in Canada to develop a certain product or system and has the world product mandate for that, so it's not serving the Canadian market, but the global market. They're now looking to continue to further expand and develop that product mandate, or potentially there's an opportunity to bring another product mandate here to Canada from the company. That's going to require a significant degree of investment in research and development to develop those new technologies.
They'll look at the business case to see how they can do that in Canada. They'll look at the tax system and the potential for some funding under a mechanism like TPC. Then there are all of the other issues that impact doing business from Canada, and some of those now are further constrained by technology constraints in the U.S.
On the other hand, they can look at their own environment in the U.S. They'll see they can get virtually 100% of that R and D funded by the U.S. Department of Defense on a cost-plus basis, and it's going to be totally non-repayable, so that's a pretty sweet business case. They can look abroad to countries like Korea, China, and India, which are looking to grow their aerospace industries and ultimately poach Canadian jobs.
So when that business, which is ultimately in business and accountable to shareholders, looks at where the best business case is to make that investment, that's the environment we compete with. Companies are looking at what is the business case, what is the leverage they get from government investment. As a result, as our investment case and business case weakens, although their business is still here in Canada, ultimately they're going to grow that business somewhere else. The sustainability of that business in Canada ultimately becomes questionable. Those investments are being made, and companies are choosing not to make them in Canada because it's no longer, in their view, competitive to grow their investment in Canada.