Budget 2025: A Measured Step Up For Intellectual Property And Innovation

Budget 2025 sets out a clear growth‑and‑productivity agenda and materially reinforces the country's intellectual property and innovation ecosystem across taxation, research and development (R&D), AI infrastructure, and capital markets. It pairs near‑term cost‑of‑capital relief with longer‑term capacity building through research incentives and IP-commercialization programs.

Taken together, the budget is pragmatic—if not yet transformational—and is likely to improve enterprise‑level incentives to create, retain, and scale Canadian IP while easing long‑standing frictions that hinder commercialization.

What the budget gets right for IP and innovation

The centrepiece is the "Productivity Super-Deduction," which reintroduces and expands accelerated expensing and capital cost allowances across a broad class of productivity-enhancing assets, expressly including patents, data network infrastructure, and computers. It also allows businesses to write off costs by