Read the report: Canada in Transition – Talent, Research and Innovation in a Changing World (October 2025)
Introduction
Canada faces an uncertain future. A shift in our trading relationships, alongside weak productivity growth and fiscal constraints, is converging into a profound test of Canada’s security and resilience. The choice before us is clear, and the new government has clearly articulated the need to respond. Canada cannot just continue to mitigate external shocks with limited control. We must seize this moment to invest in the foundations of long-term economic sovereignty, including talent, research, and innovation-driven industrial capacity. The twin pillars of economic and national security now stand as the foremost imperatives.
At a time when the federal government is reviewing fiscal commitments, investments in research and innovation must be seen as a long-term driver of productivity, prosperity, and resilience. The new government’s mandate letter commits to spending less on operations so that it can invest in people and businesses to build the strongest economy in the G7; talent, research, and innovation are central to this new mission.
Canada’s leading research universities have set out a roadmap for success to meet this moment and achieve a Canada that is strong, secure and resilient. As the federal government develops a critical budget to respond to these imperatives, U15 Canada has expanded on these proposals with a set of recommendations where the government should act with urgency and ambition:
- Rebuild Canada’s talent advantage by exempting graduate enrolments from international student caps and creating a distinctions-based immigration system to attract and retain the world’s best talent.
- Strengthen Canada’s research backbone through a Sovereign Technologies Fund that deploys public R&D in mission-driven areas such as AI, clean energy, critical minerals, and biomanufacturing.
- Build a science and innovation architecture for scale and impact by establishing the institutions and feedback loops needed to better connect research to strategic and industrial priorities, starting with the Defence Industrial Strategy.
Innovation is the foundation of a strong, competitive economy. The urgency to remain at the forefront has never been greater as trade disruptions, digital and AI transformation, and rising geopolitical tensions continue to reshape industries and disrupt global supply chains.
Not only do universities play a central role in advancing innovation and supporting Canada’s economic and national security priorities, but their mission remains far-reaching. They educate the next generation of leaders and citizens, foster discovery across all disciplines, and contribute to Canada’s health, climate, culture, and social well-being. This breadth of contribution ensures that, even as Canada focuses on the urgent imperatives of sovereignty and competitiveness, universities continue to strengthen the full fabric of Canadian society….