Montreal, February 25, 2026 – Less than a year after the Quebec government undertook a reform of its innovation support strategy, a new study by the Centre for Productivity and Prosperity – Walter J. Somers Foundation (CPP) concludes that changes to the tax system supporting scientific research and experimental development (SR&ED) are likely to significantly increase its budgetary cost without stimulating private research intensity.
“Despite its efforts to renew itself, the government is attempting to revive innovation among Quebec businesses by relying on an instrument designed more than 40 years ago,” observes Robert Gagné, Director of the CPP. “However, the SR&ED tax support system has clearly reached its limits. By increasing the tax assistance offered to large companies, the new credit will undoubtedly increase public spending, but there is no indication that this increase will translate into additional SR&ED efforts where the benefits are expected. In fact, international analyses even suggest the opposite phenomenon.”
