Quote:
Originally Posted by jammies
Subsidizing a particular kind of industry in order to encourage startups and relocation can be effective. The key is that the subsidies cannot go on forever, like Bombardier, if the industry targeted never manages to become profitable without the subsidy.
Although my personal preference would be straight-up granting money to small business startups with a viable plan. Especially in high-tech, small companies can grow into big companies in just a few years, if the idea/product is good and finds a market. A billion dollars spent giving $5 million to 200 startups is likely to create far more economic growth than a billion dollars given to one large company.
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From what I understand, Canada is not a bad place to start a tech company. We have talented people and a good climate for small business. The problem is that Canadian start-ups don't have access to the venture capital they need to grow from a start-up with 10-15 employees to a medium sized company of 50+. They have to go to the U.S. for that.