What I don’t understand is this constant drive to demonize foreign investment in Canada. The latest example is this guy with the Council of Canadian Innovators who complains about the upcoming potential of a lost decade in Canada but then takes a swipe at foreign investment.
I get that his job is to promote Canadian tech companies. Right. Good. But why demonize foreign investment? Why can’t we have both?
As I reported recently on these pages, according to Statistics Canada, Canadian companies including pension funds are investing a lot more outside the country compared to foreign companies investing here. As shown below, by 2022, Canadian companies had $726 billion more invested around the globe compared to the amount of foreign direct investment (FDI) in Canada. A decade ago, the inward and outward flow of investment was essentially the same.
Some federal politicians have gingerly suggested that more Canadian investment be put to work at home leading to G&M columnists aghast at any attempt to direct the work of the CPP and other pension funds. If they can make more money investing in Australia then so be it. But if you are opposed to foreign companies investing here then where is the investing going to come from.
It is shortsighted for groups like the Council of Canadian Innovators to crap on efforts to attract high quality companies to the country. As I have said many times before I am not comfortable with the $15 billion to attract EV battery plants but I am comfortable attracting foreign investment here to build up clusters of high tech, to strengthen our key natural resource industries and to support competition. We should boost our tech talent pipeline through PSE and immigration, put favorable policies in place including tax and investment policies and then promote the heck out of this country.
And for all the people that think it is a zero sum game- either support local firms or support FDI, I urge you to think again.
Very well said David. I do know first hand that the Canadian Stimulus Group and its associates have needed to redirect investments for the past several years more than $3.5 Billion per year. The last Brush off of investment has been from the current New Brunswick Government advising that a placement of $800 million was not wanted nor was various business opportunities to the province that would have created thousands of sustainable employment opportunities.