In 2025, Canadian tech saw a significant re-engagement with federal politics, echoing patterns from the previous decade. BetaKit’s retrospective highlights how politics and technology intersected frequently throughout the year, making it impossible to ignore. Early in 2025, the political landscape shifted, and with it, tax policies that deeply affected the tech sector. The proposed increase to the capital gains tax rate, which over 2,000 leaders deemed “disastrous,” became a focal point of contention.
As the year progressed, a change in federal leadership brought a new approach to innovation policy. Prime Minister-designate Mark Carney signaled a pragmatic shift, stating, “So, when I see that something’s not working, I will change it.” This move resonated with tech leaders, especially in anticipation of the upcoming federal election. Carney’s adoption of the ‘Build Canada’ moniker for flagship policies indicated a willingness to incorporate industry input.
For many, this felt like a return to a cycle of tech industry influence that last peaked nearly a decade prior. While history doesn’t repeat exactly, the parallels were striking. The engagement between Carney’s Liberals and the tech sector was notable, with collaborations on SR&ED reform and support for companies like Cohere.
The “Build Canada” initiative, encompassing various policies and programs, aimed to integrate “external leaders” from tech and business into the public service. This approach brought to mind the early days of the Trudeau government when figures like Shopify CEO Tobi Lütke were actively involved in shaping digital industry policy.
John Ruffolo, CCI Vice-chair, emphasized the role of the private sector, stating, “The government should be used for leverage.” This perspective highlights a strategic approach to policy engagement, where industry leaders aim to influence government direction rather than be solely dictated by it.
Featured snippet paragraph: The year Canadian tech got political again saw a resurgence in industry influence on federal policy, driven by concerns over tax changes and a desire for more supportive innovation strategies. Leaders sought to leverage government for progress.
Looking back to 2015, Canadian investment in research and development had been lagging. Prime Minister Stephen Harper’s government faced criticism for its approach to scientific research funding, which tech leaders felt stunted innovation. In response, the Council of Canadian Innovators (CCI) was formed to shape national policy.
John Ruffolo and Jim Balsillie advocated for a unified voice for the startup ecosystem, believing the private sector should lead. Ruffolo’s earlier statement underscored this philosophy: “We should not be seeking the government to lead us. That’s a big mistake. The government should be used for leverage.”
CCI successfully lobbied the new Liberal government to modify a campaign commitment regarding stock options taxes. This was a significant early win, demonstrating the potential for organized industry action.
In 2025, the landscape of industry advocacy evolved. Build Canada emerged as a prominent group, publishing numerous policy memos and facilitating connections between government officials and tech leaders.
The direct line of communication and the perceived urgency of national challenges led to more vocal and explicit feedback from the tech sector. Canadian tech executives publicly criticized government policies, addressing issues like retaliatory tariffs and foreign direct investment.
The pushback against tech’s growing influence also intensified, with questions arising about whether countries should be governed by technocrats. This was amplified by events like US big tech CEOs’ presence on inauguration day and Elon Musk’s proposed “Department of Government Efficiency.”
Political pushback also came from within the Canadian tech industry itself. Discussions around DEI initiatives, including cuts at Shopify and the formation of a new political non-profit with strong ties to the company, highlighted internal divisions.
An open letter signed by over 1,000 Canadian tech leaders, investors, and workers in February 2025 stated that the rollback of DEI was the “wrong direction” for Canada and that unelected business leaders should not govern. This was reminiscent of a 2017 open letter supporting diversity.
However, by 2025, it was clear that Canadian tech was no longer speaking with a single, unified voice. This fragmentation marked a significant shift from previous years of coordinated advocacy.
Looking ahead, the role of tech leaders and technology itself in Canadian politics is undeniable. The impact of this increased ‘leverage’ on Canada’s productivity, sovereignty, and social cohesion remains to be seen.
The new Liberal leadership has welcomed the tech and business community, but the long-term outcomes of this evolving relationship are yet to be determined. In 2026, continued observation of new policies and the success of this industry-government partnership will be crucial.
