What Can We Expect from Mark Carney's New Government?

Published on May 22, 2025

 

A new federal government, led by Prime Minister Mark Carney, has been taking office in Ottawa fairly quickly since the April 28 election. Recently, the ministers who will be responsible for certain key issues were also sworn in, and parliamentary proceedings will begin by the end of the month.

 

Based on an analysis of the campaign promises and the initial cabinet appointments, what can we realistically expect from this administration in terms of innovative entrepreneurship?

 

Ambitious promises that have yet to be fulfilled

 

In addition to a promised and announced tax cut, Mark Carney’s Liberal Party of Canada has pledged to revive the Canadian economy by focusing on private investment, boosting domestic trade, decarbonization, and innovation. 

 

Among the key measures included in his plan A Strong Canada, included increased support for research and development (up to $6 million per project through the SR&ED tax credit), the creation of a tax credit for the adoption of AI in SMEs ($400 million), and increased support for venture capital ($1 billion through the Venture Capital Catalyst Initiative).

 

To support businesses in expanding their exports—a necessity in these times of economic turmoil—the government plans to inject $80 million into the CanExport program and create a $2 billion Strategic Response Fund to mitigate the effects of trade barriers. A $5 billion budget is also earmarked to strengthen interprovincial trade, particularly through logistics and infrastructure projects.

 

Other sectors are not being left out: $25 billion will be invested in the construction of prefabricated housing, $1.5 billion in supply chains for critical minerals and clean energy projects, not to mention incentives for hiring apprentices and support for the modernization of the agri-food sector.

 

These announcements promise a breath of fresh air for innovative companies, but their implementation will be crucial to gauging their actual impact.

 

A firm reorganized around innovation

 

One way to ensure the effective implementation of this ambitious plan is to surround oneself with a high-performing cabinet. One of the new government’s most strategic decisions involves the division of economic portfolios: innovation and industry are now entrusted to two separate ministers.

 

Prime Minister Carney announced a two-tier cabinet, consisting of 28 ministers with extensive portfolios and 10 secretaries of state responsible for specific issues.

 

The two most important appointments are:

 

  • Mélanie Joly has been appointed Minister of Industry and Minister responsible for Economic Development Canada for the Regions of Quebec. This appointment, which is by no means a demotion, signals a political strengthening of this portfolio, with a mandate to drive growth in strategic sectors and facilitate dialogue between the government and businesses.
  • Evan Solomon, a former business journalist, is taking the helm of the Ministry of Artificial Intelligence and Digital Innovation, which operates at the intersection of emerging technologies, AI, and research. 

 

Of course, other appointments—such as François-Philippe Champagne as Minister of Finance, Anita Anand as Minister of Foreign Affairs, and Steven Guilbeault as Minister of Culture, Official Languages, and Canadian Identity, as well as Lieutenant of Quebec—are important for the innovation economy. 

 

Above all, it is clear that the appointments made by Mark Carney’s Liberal government are aimed at reviving structural issues such as interprovincial trade and supply chains, while equipping ministers with complementary skill sets. The new cabinet structure suggests a desire to modernize the federal government’s approach to innovation, but also to better align economic priorities with current technological realities.

 

A Parliament on Standby, the Innovation Economy on High Alert

 

While the executive branch was formed quickly, parliamentary proceedings will not begin until May 27, which is slowing down the implementation of campaign promises. Furthermore, the delayed release of the budget this fall makes it difficult to predict when the government’s major initiatives will be implemented. 

 

Against a backdrop of an economic slowdown, global trade instability, and pressures on Canadian productivity, the innovation community is calling for concrete action.

 

For innovative companies, three indicators will be closely scrutinized:

 

  1. The speed with which the new tax credits and announced funds are rolled out. Past experience has shown that the announcement of measures does not mean they are immediately available. Businesses want programs that are accessible, simple, and up and running by the start of the school year.
  2. The capacity for intergovernmental coordination, particularly regarding interprovincial trade. Several of the announced measures require close collaboration with the provinces—a challenge that is as much political as it is logistical.
  3. Openness to dialogue with regional ecosystems. While the major funds are centralized, their effectiveness will depend on strong local representatives, public-private partnerships, and consultation mechanisms tailored to the realities on the ground.

 

In short, expectations are high, but tempered by caution. The Carney administration has strong political capital, despite being a minority government, and will need to quickly demonstrate its ability to deliver results in order to regain the confidence of the business community, particularly in sectors that are innovating despite the uncertainties.

 

To learn more about specific entrepreneurship-related requests:

 

Be at the forefront of the discussion on the challenges of innovative entrepreneurship

This fall, we will bring together about 30 representatives from entrepreneurship support organizations in Ottawa as part of the Co-Elevation program on government relations. This is the perfect opportunity to learn more about lobbying mechanisms, expand your networks on Parliament Hill, and highlight key issues during strategic meetings.

Sign up here