America's loss can be Canada's gain

Mona Sabet and Eric Morse write that Canada can capitalize on the chaos south of the border and reinvigorate Canadian entrepreneurship by attracting talent that will infuse world-class research and technology into the Canadian economy and start-up ecosystem.

Canada stands at a pivotal moment. As the United States federal government aggressively slashes budgets for key science and R&D agencies—NSF by $5 billion, NIH by $9.5 billion, EPA by $5 billion

—and enacts restrictive immigration policies, a vacuum is opening in global innovation.

Tens of thousands of scientists and STEM workers are losing their jobs or their grants, and ambitious research initiatives are being paused or abandoned.

What is a devastating dismantling of U.S. leadership in science and technology could be a consequential opportunity for Canada.

Study after study has shown that investing in research is good for the economy. The Federal Reserve estimates that U.S. government-supported research from the NSF and other agencies has had a return on investment of 150% to 300% since 1950, meaning for every dollar U.S. taxpayers invested, they got back between $1.50 and $3. The advocacy organization United for Medical Research reported that each dollar of US National Institutes of Health–funded research generates $2.46 in economic activity.

Furthermore, government R&D programs, whether funded through universities or directly to startups, have been a crucial driver of growth for startups that have become some of the most successful companies in the world, from Google to Nvidia to SpaceX. In its study of 125 startups, the European entrepreneurship academy Vrelick found that R&D investment was a strong indicator of longer-term startup success.

U.S. scientists, students, and professors are already looking elsewhere to advance their research. And Many countries are already welcoming them. The Canadian government has long tried to kickstart Canada’s innovation economy and startup ecosystem. Now’s the chance for it to really lean in and make a difference.

Canada’s moment is now—here’s how we seize it:

1. Open the doors wider. Canada should streamline immigration for global researchers and Ph.D. candidates, offering flexible visas and fast-track residency. Studies of top-tier AI researchers show professional opportunities and fluid immigration policies are crucial to their relocation decisions. A welcoming Canada could attract early-career scientists displaced by U.S. uncertainty.
   
   
2. Direct public funding boldly. Canadian governments, both national and provincial, should resolve their currently fragmented innovation investment strategy, and allocate R&D dollars to universities and startups based on sector-specific areas—especially those suffering U.S. cuts: environmental science, health, space, and quantum computing. This would not just plug research gaps but position Canada as the go-to R&D partner in emerging industries.
   
   
3. Tune R&D tax incentives for startups. Conventional tax credit schemes often favor established firms. Startups built on long-term R&D deserve extended timelines and easier access to credits—otherwise, innovation with deep upfront costs will be stifled.
   
   
4. Train for commercial impact. Canada’s universities should scale up entrepreneurial curricula for graduate students and their advisors. One study suggests that Canadian startups struggle to scale. Courses in commercialization, funding strategies, and go-to-market skills, such as those offered by Western University’s Morrissette Institute for Entrepreneurship, can help increase the number of research-based startups that succeed. The U.S. has long benefited from its university-to-venture pipeline; Canada can replicate and sharpen it.