While it is true that Canada ranks low in terms of business R and D as a percentage of GDP, since the inception of the SR and ED tax incentives the growth in this ratio has been strong in Canada relative to other countries. More generally, the question of why the ratio is low has to do with much more than just tax measures. For example, there is a working paper the department published that points to our industrial structure as one of the elements.
On October 17th, 2006. See this statement in context.