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ARTICLE · 12 DECEMBER 2025

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Federal Budget 2025: Strengthening Canada's Innovation, AI, And Intellectual Property Ecosystem

Miller Thomson
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The 2025 Federal Budget (the "Budget") outlines the Government of Canada's most significant innovation-focused investments in recent years. It emphasizes artificial intelligence ("AI")...

CanadaTechnology
David Schnurr
David Schnurr
Larissa Leong
Larissa Leong
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The 2025 Federal Budget (the "Budget") outlines the Government of Canada's most significant innovation-focused investments in recent years. It emphasizes artificial intelligence ("AI"), quantum computing, intellectual property ("IP") protection, venture capital growth, and major reforms to the Scientific Research and Experimental Development ("SR&ED") tax incentive program.

These measures collectively aim to strengthen Canada's innovation ecosystem, improve commercialization pathways, and promote domestic ownership of intellectual property.

1. Investing in AI and quantum technologies

The Budget commits $925.6 million over five years to develop sovereign AI compute capacity, ensuring that Canada maintains secure and competitive infrastructure to support domestic AI innovation. Key measures include:

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