Ontario 2025 budget overlooks tech leaders’ call for innovation funding, despite a projected $14.6B deficit and growing economic concerns.
The 2025 Ontario budget has landed—and for the province’s tech sector, it misses the mark. Despite an open letter from 75 CEOs urging Premier Doug Ford to prioritize homegrown innovation, the government’s latest fiscal plan offered few answers and even fewer dollars for technology development.
As the province stares down a staggering $14.6 billion deficit—$10 billion more than last year—tech leaders argue that reactionary gestures won’t suffice.
Bold Promises, Modest Delivery
One of the few bright spots in the budget is the $90 million injection into Venture Ontario, the province’s venture capital arm. This is split into two key allocations: $50 million for VC funds targeting defence tech, AI, and cybersecurity, and $40 million for those investing in life sciences and biomanufacturing.
Another notable allocation is the $73 million in renewed support for the Ontario Vehicle Innovation Network (OVIN), a program that backs R&D efforts and regional tech incubators in the automotive and mobility space.
The budget also reaffirmed a $750 million commitment to STEM education—a figure that, while significant, does little to address structural innovation challenges.
CEOs’ Open Letter Goes Unanswered
In March, the Council of Canadian Innovators (CCI) rallied top Ontario CEOs in an open letter calling on the government to reform procurement and invest more aggressively in domestic companies. These recommendations were largely overlooked in the new budget.
Skaidra Puodžiūnas, CCI’s Ontario Director, acknowledged the Venture Ontario boost but said the province failed to show “transformational leadership.” She stressed that high-growth companies need more than reactive policies—they need systemic support.
Health Innovation Pathway Still in Limbo
The budget also offered no updates on the Health Innovation Pathway (HIP), a procurement modernization initiative aimed at giving healthtech companies better access to public sector contracts. Despite launching phase two in October and promising rapid implementation, the province has missed key deadlines.
Able Innovations CEO Jayiesh Singh, who co-signed the open letter, expressed disappointment, citing the stark contrast between the province’s limited innovation commitments and its hefty $2.5 billion investment in Honda’s Ontario expansion. Singh noted that while intentions may be sincere, the scale of action is lacking.
Foreign Investment Overshadows Local Growth
Ontario’s continued focus on foreign direct investment (FDI) has sparked frustration. While funding has poured into multinational projects, like a new Siemens R&D centre, local innovators feel left behind. Adding to the tension, Ford’s retaliatory policy against U.S. firms includes exemptions—allowing companies with over 250 Canadian employees to bypass restrictions.
As the province juggles trade wars, economic uncertainty, and a ballooning deficit, industry voices warn that without a firm commitment to domestic innovation, Ontario risks long-term competitiveness.
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