Standing Committee Told Delays in National Strategy Harm Local Technology Competitiveness Against Global Peers

OTTAWA — Internal bureaucratic delays and restrictive public purchasing rules are forcing Canada’s premier technology companies to relocate abroad, industry executives told a parliamentary committee on May 7, 2026.

Testifying in Ottawa before the House of Commons Standing Committee on Industry and Technology, representatives from the country’s high-growth business sector warned that Canada is failing to commercialize its own scientific breakthroughs.

Daniel Perry, director of federal affairs at the Council of Canadian Innovators, testified that Canada’s delay in deploying its industrial strategy has left local firms exposed to aggressive international competitors.

“The continued delay in releasing Canada’s Al strategy is not neutral,” Perry stated. “It is actually putting Canadian firms further and further behind in a race where speed, scale and early market positioning determine long-term winners.”

Conservative MP Kathy Borrelli questioned Perry regarding the federal government’s administrative track record, asking: “When asked about the Liberal government’s performance over the last year with Al, Mr. Balsillie stated, ‘I would score that it did not attend. You have to understand this is a race, and we haven’t gotten out of the locker room.’ What would your grade be for the current government, and do you believe Mr. Balsillie’s comments reflect a broader concern that Canada is falling behind in the global Al race?”

Perry acknowledged the severity of the situation, stating, “I do think we find ourselves in a real moment and a real challenge here. As I said in my opening remarks, the delay from the government on the Al strategy is putting our firms behind.”

The committee heard that federal grants are insufficient to keep high-growth companies from fleeing to foreign jurisdictions. Perry argued that the federal government must use its massive purchasing power to become a foundational customer for local tech companies. “Grants are great, but what really helps businesses is having those contracts,” Perry remarked.

Laurent Carbonneau, vice-president of policy and advocacy at the Council of Canadian Innovators, added that domestic policy settings fail to incentivize corporate growth within Canada. “When we ask our companies why they are in Canada, they almost never say this is the best place for them to grow their businesses,” Carbonneau testified. “They care about the country and want to stay here… At CCI, we want to get where people say this is the best place to do it. That’s a policy question, not a culture question.”

Simon Ahdoot, chief executive officer of Hypertec Group, presented the long-term economic dangers of Canada becoming a passive buyer of foreign tech systems rather than an independent builder. “If we are a net consumer, suppose it is a $100-billion industry and we could consume 25% more than we produce,” Ahdoot calculated. “That would mean that $25 billion leaves the country every year. This can get very material.”

Liberal MP Parm Bains asked how federal investments can better anchor domestic commercial success and address data centre capacity constraints.

Dr. Stephanie Simmons, chief quantum officer and founder of Photonic Inc., testified that next-generation physics hardware will completely alter the energy and computing requirements of artificial intelligence. She urged the government to align its procurement habits with its economic goals. “The world wants to buy from Canada,” Simmons told MPs. “We need to buy Canada in a way that lets the rest of the world buy Canada.”