A lot of people think of Thomas Edison as a great inventor. But he was also a savvy businessman—someone who understood the true value of owning ideas. That’s what made the difference in his famous rivalry with Nikola Tesla. Tesla’s ideas were brilliant. But Edison controlled the patents, the licensing and, ultimately, the profits. Today, that same dynamic is playing out between Canada and the United States. We have no shortage of innovation, just like Tesla. But without capturing the value of that innovation through intellectual property, we risk remaining an also-ran in America’s shadow.

The core problem is that our policymakers and institutions are still playing by outdated rules. In the 1970s, about 85 per cent of the S&P 500’s value came from tangible assets like factories, equipment and inventory. Today, more than 90 per cent of that value comes from intangible assets; patents, proprietary software, trade secrets—all forms of IP. And yet we continue to operate as if we’re still in a brick-and-mortar economy.

Our backwards mentality is reflected in how we allocate our innovation funding nationwide. Take the Ferrero Rocher plant in Brantford, Ontario, which just received millions in provincial government subsidies for its planned expansion. Or the hundreds of millions that Ottawa recently pledged to upgrade IBM’s semiconductor packaging facility in Bromont, Quebec. Policymakers might see these projects as political wins that create jobs and benefit the economy. But we’re essentially investing public dollars into foreign-owned companies. The profits and long-term economic benefits ultimately flow back to their home countries—not Canada. It’s like pouring water into a leaky bucket. In doing so, we’re missing the chance to invest those funds into building globally competitive Canadian firms.

What’s missing........

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