What can we expect from Mark Carney's new government?

Published on May 22, 2025

 

A new federal government, led by Prime Minister Mark Carney, has been quickly settling into Ottawa since the April 28 elections. Recently, ministers responsible for certain key portfolios were also sworn in, and parliamentary proceedings will begin by the end of the month.

 

Analyzing the campaign promises and the first ministerial appointments, what can we realistically expect from this government in terms of innovative entrepreneurship?

 

Ambitious promises that remain to be fulfilled

 

In addition to promising and announcing tax cuts, Mark Carney's Liberal Party of Canada has pledged to revive the Canadian economy by focusing on private investment, stimulating domestic trade, decarbonization, and innovation. 

 

Among the key measures that were part of his plan A Strong Canada were increased support for research and development (up to $6 million per project through the SR&ED tax credit), the creation of a tax credit for the adoption of AI in SMEs ($400 million), and increased support for venture capital ($1 billion through the Venture Capital Catalyst Initiative).

 

To facilitate exports by businesses, a necessity in these times of economic turbulence, the government plans to inject $80 million into the CanExport program and create a $2 billion Strategic Response Fund to mitigate the effects of trade barriers. A $5 billion envelope is also planned to strengthen interprovincial trade, particularly through logistics and infrastructure projects.

 

Other sectors are not being left behind: $25 billion will be invested in the construction of prefabricated housing, $1.5 billion in critical mineral supply chains and clean energy projects, not to mention incentives to hire apprentices and support for the modernization of the bio-food sector.

 

These announcements promise a breath of fresh air for innovative companies, but their implementation will be crucial in measuring their concrete effects.

 

A firm reorganized around innovation

 

One way to ensure the effective implementation of this ambitious plan is to surround yourself with a high-performing cabinet. One of the new government's most strategic decisions has been the division of economic portfolios: innovation and industry are now entrusted to two separate ministers.

 

Prime Minister Carney announced a two-tier cabinet, with 28 ministers holding full portfolios and 10 secretaries of state dealing with specific issues.

 

The two most important appointments are:

 

  • Mélanie Joly has been appointed Minister of Industry and Minister responsible for Canada Economic Development for Quebec Regions. This appointment, which is by no means a demotion, is a sign of the political strengthening of this portfolio, with a mandate to anchor growth in strategic sectors and facilitate dialogue between the government and businesses.
  • Evan Solomon, a former economic journalist, is taking the helm of the Ministry of Artificial Intelligence and Digital Innovation, at the intersection of emerging technologies, AI, and research. 

 

Of course, other appointments—such as François-Philippe Champagne to Finance, Anita Anand to Foreign Affairs, and Steven Guilbeault to the Department of Culture, Official Languages, and Canadian Identity, as well as Lieutenant of Quebec—are also important for the innovation economy. 

 

Above all, it is clear that Mark Carney's Liberal government appointments are aimed at reviving structural issues such as interprovincial trade and supply chains, while equipping ministers with complementary profiles. The new ministerial structure suggests a desire to modernize the federal innovation machine, but also to better integrate economic priorities with current technological realities.

 

A Parliament on standby, the innovation economy on high alert

 

While the executive branch was quickly established, parliamentary proceedings will begin on May 27, which is slowing down the implementation of election promises. In addition, the delayed delivery of a budget in the fall makes it difficult to anticipate the delivery of the government's major initiatives. 

 

Against a backdrop of economic slowdown, global trade instability, and pressure on Canadian productivity, innovation circles are expecting concrete action.

 

For innovative companies, three signals will be particularly scrutinized:

 

  1. The speed of deployment of the new tax credits and funds announced. Past experience has shown that the announcement of measures does not mean they are immediately available. Businesses want programs that are accessible, simple, and operational by the start of the new school year.
  2. The capacity for intergovernmental coordination, particularly on interprovincial trade. Several of the measures announced require close collaboration with the provinces—a political as well as a logistical challenge.
  3. Openness to dialogue with regional ecosystems. While large funds are centralized, their effectiveness will depend on strong local relays, public-private partnerships, and consultation mechanisms adapted to the realities on the ground.

 

In short, expectations are high, but tinged with caution. The Carney government has strong political capital, despite being a minority government, and will need to quickly prove its ability to deliver results in order to regain the confidence of the business community, particularly in sectors that are innovating despite the uncertainties.

 

To learn more about certain entrepreneurship-related requests:

 

Be at the forefront of discussions on the challenges of innovative entrepreneurship

This fall, we will bring together some 30 representatives from entrepreneurial support organizations in Ottawa as part of the co-elevation program in government relations. This is the perfect opportunity to learn more about lobbying mechanisms, develop your networks on Parliament Hill, and raise certain issues in strategic meetings.

Register here