Canada's long term economic strength and competitiveness in an increasingly uncertain global environment will depend on its ability to develop top-tier talent, mobilize research capacity and turn innovation into sovereign capability. That means ensuring students can access opportunity, workers can build new skills and communities across the country can grow and adapt in a changing economy.
Universities Canada's pre-budget submission positions the country's universities as essential partners in advancing these national priorities. As major economic engines, universities contribute $48.6 billion annually to the economy, support more than 410,000 jobs nationwide and perform $19 billion in research and development each year. They are also where more than 1.5 million students each year gain the skills and experience needed to build careers, earn strong incomes and boost Canada's productivity. From urban hubs to regional centers, universities serve as anchors of local economies and primary drivers of workforce readiness.
Canada's universities are central to building the talent, skills and innovation our economy depends on. Unlocking that full potential requires essential contributions by the federal government.
"Canada's economic future depends on our ability to develop talent, drive innovation and compete on the global stage," said Gabriel Miller, president and CEO of Universities Canada. "Universities are central to that effort, but their capacity is being stretched to a breaking point. Budget 2026 is an opportunity for the federal government to use its policy levers to strengthen that foundation and ensure Canada can meet the challenges ahead."
The submission outlines four targeted areas for coordinated federal action:
- Compete for the world's best talent: Expand Canada's International Education Strategy into a comprehensive International Higher Education Talent, Research and Innovation Strategy to respond to intensifying global competition, aligning federal policies to attract talent, expand research partnerships and support export diversification in priority markets.
- Equip Canadians with the skills our economy needs: Make coordinated strategic investments in Canada's domestic skills pipeline by ensuring universities are integral partners in the design and delivery of federal workforce initiatives -- including work-integrated learning, the Canada Defence Skills Agenda and Workforce Alliances -- to strengthen regional talent pipelines and prioritize career pathways for veterans and mid-career workers into strategically important fields.
- Harness university research to advance national priorities: Leverage the full capacity of Canada's university research ecosystem to strengthen sovereign capability by implementing scalable mechanisms -- including standardized entry points and funding that spans the full innovation continuum -- to align university research with federal priorities such as defence, artificial intelligence and dual-use research.
- Strengthen institutional capacity through targeted, fiscally responsible federal tax relief: Using existing tax mechanisms to ensure rapid and efficient delivery, increase the GST/HST rebate for universities to 100 percent, aligning the treatment of universities with municipalities and other public interest organizations. This would allow institutions to reinvest an estimated $240 million annually directly into teaching, research and student support.
By pursuing this integrated strategy and ensuring greater alignment across federal levers such as skills, research, immigration and tax policy, the government can strengthen Canada's workforce, increase productivity and reinforce national sovereignty to ensure the country can fully leverage its university system for long-term economic growth.
Download the submission: https://univcan.ca/publication/building-canadas-competitive-advantage-through-universities/
