What does Budget 2025 mean for Canadian innovation?

The key numbers from the federal budget you need to know about, plus upcoming events and tech news from the ecosystem.numbers that you need to know.

The next big test for Carney’s Liberals arrives next Monday when the House of Commons votes for the third and final time on the budget. If it passes (which is looking more and more likely), what could it mean for the innovation community? Below, our vice president of public affairs, Christine Bomé, lays out what you need to know.

Also, in this week’s newsletter:
Stories from the ecosystem, upcoming events and the hottest jobs this week

Budget 2025: By the numbers

“We really need to think about how we’re going to position Canada in the digital economy and the economy of tomorrow,” Finance Minister Philippe Champagne said last week at an event at MaRS. “How can we win and keep winning?”

The budget he tabled a few days earlier aims to improve our odds of success with a mix of new spending ($89.7 billion) and saving (roughly $56 billion in cuts to the public service and program spending). It’s designed to spur $1 trillion in private sector investments to boost productivity and competitiveness.

The budget outlines what he calls “a generational investment strategy”: to build a clean electricity grid, unlock the full value of our critical minerals, accelerate housing construction, and drive innovation in sectors like artificial intelligence, life sciences and advanced manufacturing — the kinds of investments that will supercharge growth.

There’s a lot to unpack in this budget, but within this 493-page document there are promising initiatives that could help advance AI adoption, SME procurement and open banking as well as address growth-stage funding gaps.

Notable line items:

• $750 million to support Canadian firms facing early growth-stage funding gaps
• $79.9 million to support the new Small and Medium Business Procurement Program
• $12 billion for emerging technology support (AI, quantum, EVs)
• $925.6 million over five years to fund large-scale sovereign public AI infrastructure, improving access to compute capacity for researchers and innovators
• $1 billion to launch the new Venture and Growth Capital Catalyst Initiative through BDC, a fund-of-funds that would leverage more private venture capital by incentivizing pension funds and other institutional investor participation. The initiative would also support new and emerging fund managers and important sectors such as life sciences
• $1.7 billion to recruit over a thousand highly qualified international researchers to Canada
• $656.9 million to develop and commercialize dual civilian-military technologies in a range of industries, including aerospace, automotive, marine, cybersecurity, artificial intelligence, biodefence and life sciences

“It’s time,” Champagne said, “to work for a better future together, and use the talent we have in Canada to make us strong.” – Christine Bomé

Stories from the ecosystem

AI: Here’s a smart tool that can help small businesses solve their “Goldilocks problem.”

HEALTH: Ahead of the annual meeting of the American Society of Tropical Medicine and Hygiene in Toronto this week, a look at the growing risk of vector-borne diseases.

URBAN AG: Get rid of invasive plants the old-fashioned way — hire goats.

HEALTH: Virus season has arrived. Here’s what you need to know to stay safe.

ENTREPRENEURSHIP: Startup numbers fall sharply after AI bump.

HEALTH: How at-home screening tests could cut wait times and close healthcare gaps.

MaRS Monthly: November

Get caught up on all the latest startup news in 90 seconds. This month’s video highlights the launch of Life Sciences Central, the relaunch of our Capital Program and some exciting fundraising news.

Upcoming events

• At Impact AI, leaders from Google, Vooban, Electra and other tech companies discuss the opportunities and challenges of AI. Use the code MARS2025 for 25 percent discount on tickets. November 19. Toronto.
• Johnson and Johnson’s “Herding Cats” business development and dealmakers panel includes founders and principals from Noa Therapeutics and Amplitude Ventures. November 19. Toronto.
• At the next edition of MaRS Sessions, AlumaPower, Carbogenics and Daylun talk about the growing shift to circular materials and energy sources. November 20. Online.
• Sehjal Bhargava and BlueDot’s Andrea Thomas discuss how to better support public health in the face of climate change at the next MaRS Morning. Hosted by the Globe and Mail’s Rachel Giese. November 25. Toronto.
• MaRS Climate Impact features special guests Adam Becker (author of More Everything Forever), Sightline Climate’s Kim Zou, NSTX’s Chris Bryson and other global climate leaders. December 2 and 3. Toronto.

For more, visit our events page.

Careers: The hottest jobs in tech this week

• Foqus Technologies, which uses AI and quantum tech to speed up MRIs, is looking for a senior software engineer and a business development intern. (Toronto)
• Pipeline infrastructure experts INGU is hiring a pipeline inspection manager and an experimental physicist. (Calgary)
• Aslan Renewables, builder of scalable modular dams, is seeking a director of engineering and an operations and project coordinator. (Toronto, Charlottetown)
• Erthos, which develops bespoke biomaterials, is hiring a part-time machine learning scientist. (Toronto)
• Vention, which helps manufacturers automate their operations, is hiring for several positions, including product marketing manager, business development representative and firmware engineering manager. (Montreal)

For more, visit our jobs page.

In the queue: What we’re reading, watching and listening to at MaRS

This week: Alexandra Zakreski, senior manager of cleantech venture services, shares her picks.

• An inspiring primer on pigment: “I always like to have two books on the go: one fiction, one non-fiction. My current non-fiction pick is Kassia St. Clair’s The Secret Lives of Colour, which looks at the cultural, social and scientific history of colour. It’s impeccably researched and utterly engrossing, and I find the chemistry element of each story particularly fascinating.”
• A classic campus novel: “There’s something autumnal about Donna Tartt’s The Secret History, which takes place at a small liberal arts college and follows a group of classics students who are hiding a dark secret. I love the writing and characters — this one’s hard to put down.”
• An uproarious British game show: “I live in London and can’t get enough of British television — it’s definitely one of the things I’ll miss most when I relocate to Toronto shortly. On the frothier side of things, I’m obsessed with The Celebrity Traitors. Watching legends like Stephen Fry and Alan Carr compete in physical challenges is a riot and host Claudia Winkleman has the best outfits.

Photo illustration by Stephen Gregory, photo: Unsplash

Sign up for our newsletter