Canada’s long-standing strategy of attracting foreign multinationals with public subsidies is eroding the country’s economic sovereignty and long-term prosperity, says Benjamin Bergen, CEO of the Canadian Venture Capital and Private Equity Association.

In a Maclean's op-ed, Bergen argues that Ottawa’s recent decision to reinvest $40 million in Finland-based Nokia’s Ottawa operations reflects a deeper “misunderstanding of where value comes from.” While the deal is expected to create 340 jobs, Bergen says it continues a pattern in which “we get the jobs. Someone else gets the wealth.”

Bergen contends that governments have prioritized employment numbers over ownership of intellectual property, the true source of modern economic value.

"There’s no question that these investments create jobs, and those jobs matter. But the real wealth in these industries doesn’t sit on the factory floor, which is increasingly being occupied by robots. It sits with the owners of the technology underpinning those products," he wrote.

"At its core, Canada’s challenge is that we failed to recognize the shift from tangible to intangible wealth over the final three decades of the 20th century. Value is no longer captured primarily through labour in the way it was in an industrial economy. It’s captured through IP."

Canada’s industrial policy should focus on two principles: ownership and scale, he says. Public investment should support Canadian-owned firms that control their intellectual property, since ownership—not just jobs—determines where long-term value is created. Governments should also be wary of policy advice from business groups dominated by multinational subsidiaries whose interests may not align with Canada’s.

On scaling, Bergen says Canadian firms struggle to grow because government procurement often favours large, foreign incumbents. By using public spending to prioritize Canadian solutions, governments can help domestic firms scale, attract private investment and become globally competitive.

"If Canada builds firms and technologies the world depends on, governments will think twice before imposing arbitrary tariffs or flying balloons over our airspace to spy on our citizens. Our economic strength will become a form of security," he writes. "But if we fail to act, we will continue down a path of economic erosion and increased vulnerability."