Canada has no shortage of ingenuity. From quantum computing to secure communications, aerospace engineering to ecommerce platforms, this country has produced world-class technology and companies with global potential. But if you look closely at the history of Canadian innovation, a troubling pattern emerges—one marked not by failure, but by abandonment.
Again and again, Canadian governments have celebrated innovation only after it’s succeeded—or worse, after it’s been sold, buried, or stripped for parts. There’s no safety net. No industrial strategy. No political will to step in when a national champion stumbles.
And the consequences have been staggering.
Avro Arrow: The Original Abandonment
In the 1950s, A.V. Roe Canada developed the Avro Arrow, a supersonic jet so advanced it spooked both American and Soviet intelligence. It could have cemented Canada’s place as an aerospace leader. Instead, the government cancelled the project in 1959, destroyed all prototypes, and laid off 14,000 workers. It remains one of the most infamous examples of Canada killing its own innovation, and set the tone for decades to come.
Nortel: A Tech Giant Left to Die
Fast forward to the 2000s: Nortel Networks, a telecom titan and one of the most valuable companies on the TSX, began to unravel. Accounting scandals and poor management played a role—but so did a lack of government vision. When Nortel filed for bankruptcy in 2009, the federal government offered no bailout, no strategic restructuring—just silence. Meanwhile, the U.S. and EU were actively propping up their own telecom infrastructure. Nortel’s patents were sold off to foreign competitors. Thousands of jobs and billions in intellectual property vanished overnight.
BlackBerry: Trusted Everywhere but at Home
Once the gold standard for secure mobile communication, BlackBerry (formerly Research In Motion) had clients that included governments, CEOs, and heads of state. But when Apple and Android reshaped the mobile landscape, BlackBerry’s hardware business faltered. Despite its strategic importance in cybersecurity and communications, the Canadian government offered no meaningful support—no procurement guarantees, no defense of a Canadian tech brand that was trusted globally. The company pivoted to software, but the damage to its standing—and Canada’s reputation for protecting innovation—was done.
Corel and the WordPerfect Surrender
Ottawa-based Corel once had a real shot at challenging Microsoft Office, especially after acquiring WordPerfect in the 1990s. But Microsoft used its Windows monopoly to bundle Office and wipe out competition. The U.S. launched antitrust cases. Canada? Nothing. Not even procurement preferences to keep Corel alive in the public sector. The result: Corel faded into irrelevance, and Canada forfeited the chance to own a foundational layer of modern digital productivity.
MDA and the Space That Got Away
MDA, builder of the RADARSAT-2 satellite and Canada’s famed Canadarm, found itself trying to sell its space division to a U.S. defense contractor in 2008. The Canadian government reluctantly blocked the sale, but it did little else to support the company afterward. MDA, disillusioned, began shifting its strategic focus elsewhere. The country lost the momentum—and the ambition—to lead in satellite and space-based systems.
Entrust: Trusted by the White House, Ignored by Ottawa
Ottawa-based Entrust Technologies pioneered encryption and digital identity solutions used by the Pentagon, the FBI, and even the U.S. White House. But Canadian federal departments? Not interested. The bulk of Entrust’s early success came from U.S. government contracts, even while its HQ sat a few kilometers from Parliament Hill. It eventually moved to the U.S. entirely—another strategic asset quietly lost.
D-Wave: Quantum Computing, American Funding
D-Wave Systems, based in Burnaby, BC, was the first company in the world to sell commercial quantum computers. Groundbreaking, yes—but most of its early funding and support came from NASA and the U.S. military, not Canadian agencies. Despite its clear strategic value, Canada never fully embraced the opportunity to lead in a sector that could define the next 50 years of computing.
Shopify: No Thanks to Ottawa
Perhaps the most galling case is Shopify, Canada’s most successful tech company of the past 20 years. It became a global ecommerce platform without any major government support. No large grants. No procurement contracts. No early adoption by Canadian institutions. Shopify succeeded in spite of the system, not because of it. And its executives have said as much, criticizing Ottawa’s sluggishness and lack of strategic tech policy.
What’s the Pattern?
Canada doesn’t just have a few missed opportunities—it has a systemic problem. The federal government consistently:
- Fails to procure from Canadian tech companies
- Avoids strategic investment in frontier technologies
- Responds reactively rather than proactively
- Capitulates to foreign pressure instead of defending national assets
While other countries aggressively support their champions—through defense contracts, export financing, strategic procurement, or regulatory shelter—Canada stays stuck in a free-market fantasy, hoping the invisible hand will sort it all out.
Innovation Needs a Net
The truth is, no successful innovation ecosystem is purely private. The U.S. tech sector wouldn’t exist without DARPA, NASA, and massive federal procurement. South Korea, Germany, Israel—all deploy public money to anchor private innovation. Meanwhile, Canada builds the fire, then stands back while someone else cooks.
It’s not enough to celebrate Canadian innovation in hindsight. If we want to own the future, we need a strategy to defend, nurture, and scale what we build.
Because without a net, our best ideas—and the companies behind them—will keep falling.
