Alberta’s Tech Entrepreneurs Need a Budget for the 21st Century

By Jess Sinclair, CCI's Director of Prairie Affairs

"We know that oil prices will continue to be volatile and fluctuate. We need to remain focused on paying down debt and saving for the future. We are committed to reducing the debt burden on Albertans today and the next generations."

These are Alberta Finance Minister Nate Horner’s words in the lead-up to the province’s 2024 budget, set to be released Thursday February 29.

The message is clear; in light of oil prices that have softened over the past year, Albertans can expect muted spending that more or less holds the line when government tables the numbers later this week.

One thing is for certain: the province’s intangible economy is on fire. Alberta’s tech entrepreneurs are tirelessly transforming the province into an innovation powerhouse where the big ideas of tomorrow are ideated and commercialized. They’ve helped the province’s tech sector buck the headwinds that have plagued other jurisdictions. Alberta has beaten its own venture capital attraction records for four years running, and is on track for another banner year in 2024.

For its part, the Smith government has made moves toward becoming the fastest and freest jurisdiction in Canada in which to do business for folks with big ambitions. But the province can do more in a milieu where tech unicorns grab headlines but some incredibly promising homegrown companies still struggle to scale up.

Over the last several budget cycles, CCI and our members have been asking the province for specific, common-sense, and comparatively inexpensive policy shifts that would set the stage for more Alberta companies to thrive and the province to attract new head offices.

Back in October, we called for an update on the long-promised Alberta Digital Strategy. Tech and Innovation Minister Nate Glubish has been fond of asserting that “every (Alberta) industry is a tech industry.” The province could parlay the digital strategy into a vision for innovators to attract the talent, capital and customers that are their lifeblood through:

• Thoughtful and nimble provincial procurement policy. From scale-up vouchers to more transparent and communicative concierge services, there are many levers available to government to quickly improve procurement processes to support domestic companies. If you’re an Alberta government official reading this piece right now, here’s a link to more tried-and-true ideas other jurisdictions have put into practice to improve their procurement processes and maximize value for taxpayers.

• Modernization of Alberta’s intellectual property regime. Provinces like Ontario and British Columbia have beat Wildrose Country to the punch when it comes to facilitating the commercialization of and collecting rents on the great ideas of resident innovators. Alberta should follow their lead; and quickly. As an added bonus there’s no need to reinvent the wheel here. Ontario began by challenging the province’s post-secondary institutions to take another look at their own commercialization frameworks. What’s stopping Alberta from making a similar announcement over the coming months?

• Addressing Alberta’s skilled labour shortage to improve access to talent for domestic innovators. In the absence of suitable post-secondary and cooperative programming, government should provide financial support for more companies to upskill their own workers. To ensure these programs are effective in meeting labour market needs, the province needs to work with industry to develop evaluation metrics that are used to qualify programs for funding.

These programs serve as an effective employment retention and generation tool for Alberta’s larger digital economy and keep income tax dollars in the province.

It’s important to reiterate that many of these items are wildly inexpensive when stacked against other government line items. But they speak to the need for more agility, responsiveness, and engagement with Alberta entrepreneurs on the part of government.

Minister Glubish is too right when he notes that “every industry is a tech industry.” Alberta policymakers should put this sentiment into action by doing more to shore up innovation in all sectors.

The province has a clear opportunity here to leverage its existing strengths into the kind of multi-generational economic prosperity on which Alberta political legacies are built.

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CCI’s 2024 Pre-Budget Submission for Alberta can be viewed here. To learn more about CCI’s work on the Prairies, or to receive a copy of our media statement following the release of the Alberta budget, contact Jess Sinclair at jsinclair@canadianinnovators.org.

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