Madam Speaker, I will be splitting my time with the member for Hastings—Lennox and Addington—Tyendinaga.
In the coming months, the world will be watching a mission to space called Artemis II, the first crewed flight of NASA's Artemis program, that will fly around the moon. It is an incredible time to be alive, that we can witness this iconic moment of human innovation in real time. For Canada, this is not just another launch. It is a national moment. For the first time, a Canadian astronaut, Jeremy Hansen, will fly as part of the crew. Canadian space robotics will be part of this visionary pursuit, and Canada's role will, once again, prove something we already know: When this country sets a clear objective and aligns its talent, capital, innovation and institutions behind it, we can compete with anyone.
We have done this before. Canada became, in fact, the third spacefaring nation in world history in 1962 with the Alouette-1. We became a world leader in space robotics with the Canadarm in the 1980s, so trusted that this innovation in robotics became indispensable to our allies. Today, through our contributions to the Artemis program, particularly Canadarm3 for the lunar Gateway, Canada has secured astronaut flights and meaningful roles in the next era of space exploration.
Let me say this clearly at the outset of this debate today on our important opposition motion on sovereignty, and economic sovereignty therein. Canada can build, we can invest, and we can lead. However, there is a hard truth in this. Too often, we are not translating our capability into lasting national strength. That is why I want to focus my remarks today on a critical part of our motion: protecting Canadian innovation and requiring the Minister of Industry to present plans to Parliament to keep Canada's inventions, discoveries and innovations from being sold off to other countries.
Right now, Canada is not building enough national champions. We are too often building sales listings, for example, that other countries come and take their pick of. Canadian taxpayers fund the research that trains the talent and creates highly valuable ideas and inventions. In other words, that is Canada's intellectual property. At the most important stage, when firms need to scale, when they should be growing into companies with hundreds, if not thousands, of employees with good-paying jobs, Canada's business environment too often nudges them toward selling, relocating or being absorbed by larger foreign competitors. We fund the discovery here, but the long-term prosperity goes elsewhere. Time and time again, this is happening. This is not an accident. It is a predictable outcome of a policy environment that is fragmented, slow and largely indifferent to the results that it funds.
The Business Council of Alberta has noted the problem with high taxes on capital combined with regulatory friction. We hear this all the time from our business leaders: High taxes and high regulation are the biggest problem in Canada. They reduce incentives for firms to reinvest and grow domestically here at home. For many Canadian start-ups, the problem is not that they want to leave Canada, but the gravitational pull of a faster, larger American economy, one that actively attracts talent, capital, and intellectual property and jobs, is just too inviting. With government inertia in this country, it is just too tempting to go down there, where it is more rewarding in many ways.
Keeping innovation in Canada is not just an academic exercise for discussion. Our Canadian innovation is our economic power. It determines whether Canadians earn high wages. It determines whether our communities grow or are hollowed out, and whether this country controls the industries that underpin its security and prosperity.
When we talk about sovereignty in 2026, it is not just about our borders or our territory. Innovation sovereignty comes down to three things: who owns the patents, who controls the data and who builds the capabilities here at home. Whoever owns those things owns the future tax base, owns the high-skilled jobs and leverages that in our trade negotiations, for example. That all goes together. Without sovereignty and innovation, we cannot be sovereign in our economy.
I have spent the last eight months as Canada's industry critic meeting innovators across this country: builders in aerospace, advanced manufacturing, AI, robotics, defence and advancing technologies. Their message is remarkably consistent regarding the problems that Canada is facing. They want to scale in Canada, and they want to hire more Canadian workers, but our system is working against them.
In fact, Canada has well over 100 federal innovation programs spread across various departments and agencies. Of course, each was created with good intentions by some minister, but together they form a system that is busy without being very strategic. They are not aligned. They seem very generous, but in fact, they are not disciplined at all toward a strategic goal. Governments measure success by announcements and spending, by how many press releases they do, not by whether Canadians can pay their bills, afford their mortgages or have confidence that their children will have more opportunities and a better life than they do.
The link between innovation policy and everyday life is, of course, productivity, which we hear a lot about these days from economists. The Bank of Canada, for example, has been clear that Canada's productivity problem has reached emergency levels. Governor Tiff Macklem warned that unless we change course, Canada's standard of living will be lower than it otherwise would have been. We will be poorer if we do not change course, which is a pretty drastic message from the Bank of Canada governor.
The deputy governor, Nicolas Vincent, reminded us that Canada's affordability problem is fundamentally a productivity problem, because the only sustainable way to raise incomes in this country is to raise our productivity. However, productivity is not about working harder, which I think is what a lot of people think when they hear that word. It is in fact about whether workers have the capital and the advanced technologies to produce more and work less to create more value more easily.
Right now Canada's productivity is trailing that of the U.S. by 30%, and the gap is widening. Canadians can work just as hard and be just as educated, and still fall behind because our system does not support investment and scale, and that is where innovation policy becomes central. It is not because Canada is lacking ideas; we have so many ideas and much talent, but we are lacking focus and ownership over those ideas, especially in the long term.
Governments announce many programs, launch consultations and publish frameworks, but our outcomes have not improved. For example, Canada ranks last in the G7 for turning innovation inputs into economic outputs. More than half of industry-directed intellectual property generated at Canadian universities is owned abroad, for example, which is pretty shocking. Once intellectual property leaves, it rarely comes back, which means other countries are being enriched by our talented idea creators.
This problem is especially clear in strategic industries like space and aerospace. These are not “nice to have” science projects; they are critical in the domestic and international terrain that we are seeing changing at a geopolitical level today. They underpin communications, navigation, wildfire monitoring, Arctic domain awareness, disaster response and national defence, and they are central to NORAD modernization and allied security. If Canada cannot build, own and control these capabilities, we become dependent on other countries for functions essential to our sovereignty, which is something Canadians have become acutely aware of in recent months. That is why space, for example, is a powerful indicator of what Canada must and can in fact do better.
As shadow minister for industry, I have seen these capabilities first-hand. I have toured Magellan Aerospace in Winnipeg, where skilled Manitobans build critical components for the world's best fighter jet, the F-35. Here in Ottawa I visited Mission Control, a Canadian company developing lunar rover capability. It is quite amazing. These are the kinds of innovations that strengthen Arctic research and security, and they secure maritime safety and really the role of Canada in the emerging space domain, which is critical for our national security. We have the talent, we have the capability and we have the ambition, but what is missing is a federal innovative program and framework that really treats sovereignty as the objective, not an afterthought.
This brings me to part c of our Conservative motion today. It would require the Minister of Industry to present plans to Parliament to keep Canadian innovation in Canadians' hands, which is really not a radical concept. In fact, I would argue it is the responsible thing that the Liberals should be doing right now. It asks essential questions: What technologies must we be controlling? What supply chains must be anchored here? What capabilities are critical to economic resilience and national security? Importantly, how do we keep these innovations here in Canada now and in the long term? Without any answers, innovation from the government becomes a scattershot plan such that we are working harder but not together.
The motion also recognizes that innovation cannot scale without capital: without more money, so to speak. That is why part b proposes a Canada first reinvestment tax credit, which would defer capital gains when the money is reinvested in Canadian businesses and productive assets. If capital stays in Canada, innovation has a better chance to scale here rather than leave to the U.S., and it creates more good jobs, higher wages and more opportunities for our kids. This matters, because investment per worker right now in Canada is half that of the United States. William Robson of the C.D. Howe Institute told the industry committee that U.S. firms invest roughly three times as much per worker. This needs to change if we are going to secure our economic sovereignty.
To be clear, the tax measure must support a larger strategy. Tax policy alone cannot fix a system that lacks focus. The central point of the motion is that Canada needs an economic sovereignty strategy that prioritizes keeping Canadian innovation in this country. We cannot keep funding innovation and exporting our values.
When Artemis II launches, Canadians, especially young Canadians, will be watching and inspired. These are the future innovators of our country. We need to make sure that they can produce amazing jobs and innovation for today and into the future, and our motion is a central part of making that happen.