Is Canada Getting It Right by Funding Auto Innovation?

Jan. 4, 2013

Prime Minister Steven Harper;s announcement of a five-year extension of the $250 million Automotive Innovation Fund is a sound economic investment. That's because prior funding yielded a six fold investment return.

Adrienne Selko Blog

The answer is yes.

Prime Minister Steven Harper explains that today's announcement of a five-year extension of the $250 million Automotive Innovation Fund is a sound economic investment. That's because prior funding yielded a six fold investment return.

The government says its original investment stimulated some $1.6 billion in innovative projects across the industry, and resulted in half a million spin-off jobs, as reported by the CBC News.

The Fund, established in 2008, was given for projects that would spur private sector investment of more than $75-million over the five years. The emphasis was on strategic, large-scale research and development according to an article in the Financial Post.

Companies such as Magna International Inc., Ford Motor Co. of Canada, Ltd., Toyota Motor Manufacturing Canada, and Linamar Corp. have tapped the funds.

However today's auto sector is waning with GM halting production of a model in a plant in Ontario and Ford having already closed a plant in Ontario.

So it seems new investment might just be what's needed.

About the Author

Adrienne Selko Blog | Senior Editor

Focus: Expansion Management & the Biotech & Life Sciences Industries

Email: [email protected]

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Senior Editor Adrienne Selko manages IndustryWeek’s Expansion Management, delivering ideas and information about how successful manufacturers leverage location to gain competitive advantage. She explores the strategies behind why companies located their headquarters, research institutes, factories, warehouse and distribution centers and other facilities where they did, and how they benefit from the decision.

Adrienne is also the editorial coordinator of the IndustryWeek Expansion Management Roundtable events, which unites economic development professionals to network and discuss the latest trends in site location.

As well, Adrienne tells the stories of successful companies in the biotechnology and life sciences industries.

In the past, Adrienne has managed IndustryWeek’s award-winning website, overseeing eNewletters, webinars, and contributed content. Before joining the staff, Adrienne was managing editor of corporate publications at a large regional financial institution. She also ran a public relations and marketing company that published a best-selling healthcare book.

Adrienne received a bachelor’s of business administration from the University of Michigan and is especially interested in wellness and natural health.