Innovation is not a luxury for advanced economies; it is their lifeblood. In a world buffeted by technological disruption, shifting global alliances, and growing climate demands, innovation is what differentiates nations that merely adapt from those that lead. For us as Canadians—whose GDP per capita now trails 47 of 50 U.S. states—the stakes could not be higher.

The transformative potential of innovation is visible across all sectors. In energy, generative AI, and advanced manufacturing, technological breakthroughs promise not just marginal gains but exponential growth. According to BCG, generative AI alone could deliver an economic impact of up to $200 billion annually by the 2030s—nearly 7% of our GDP. The gains here are not abstract; they translate into higher wages, faster productivity growth, and more resilient public services.

Innovation also serves as the backbone of our societal well-being. It allows for new modes of healthcare delivery, modernized infrastructure, and improved education systems. Without it, we will struggle to sustain the core functions of a prosperous society. For example, declining productivity and stagnant incomes threaten our ability to provide affordable housing and accessible healthcare—services that Canadians have long viewed as non-negotiable.

Moreover, innovation is key to ensuring our future competitiveness. Countries like the United States, China, and Germany have turned their R&D engines into global advantages. We risk permanent economic decline if we fail to keep pace. The warning signs are evident: Canadian businesses invest only two-thirds as much per worker as their American counterparts in machinery, software, and intellectual property. This underinvestment not only slows our growth but also hinders the emergence of global champions.

Finally, innovation fuels national cohesion. A society that nurtures inclusive and adaptive innovation can better bridge generational, regional, and economic divides. Our prosperity depends not just on inventing the next big thing, but on ensuring that the benefits of those inventions are widely shared.

In short, innovation is not merely a metric on a spreadsheet; it is the engine of our modern civilization. It determines how we live, compete, and ultimately thrive. For Canada, fostering innovation is not an option. It is an imperative.