Fact-Check: Mark Carney's Promise to Leverage Government Purchasing Power for Canadian Innovation and SME Support
Overview of the Promise
During his 2025 election campaign, Mark Carney, leader of the Liberal Party, promised to "bet on Canadian innovators and entrepreneurs" by leveraging the government's purchasing power to drive Canadian innovation. This included solving Canadian problems in new ways, improving efficiency and service delivery, and supporting small and medium-sized businesses (SMEs). The promise aimed to use public procurement as a tool to foster domestic innovation and economic growth, particularly amid trade challenges and the need for productivity gains.
Actions Taken by the Carney Government
Since taking office in early 2025, Prime Minister Mark Carney has initiated several measures aligned with this promise. On August 29, 2025, Carney announced the launch of a new Major Projects Office to fast-track nation-building projects, emphasizing the need for decisive action to build a competitive economy. This office is designed to streamline approvals and procurement for large-scale infrastructure, potentially prioritizing Canadian firms and innovative solutions.
In the defence sector, Carney promised and has begun implementing a revamp of procurement processes. In April 2025, during the election campaign, he pledged to create an agency to speed up defence purchasing and prioritize Canadian equipment and materials. Post-election, this has moved forward with commitments to boost domestic research on advanced military technology, using government buying power to support local innovators and SMEs.
Additionally, on August 5, 2025, the government announced a $1.2 billion investment in forestry innovation and housing solutions, welcoming federal funding to advance wood-based technologies. This initiative leverages government procurement to drive innovation in sustainable materials, addressing housing challenges while supporting SMEs in the forestry sector.
Legislation Proposed or Passed
The Carney government tabled the proposed "One Canadian Economy" law in June 2025, which aims to supercharge the economy by removing internal trade barriers and promoting unified economic strategies. While not exclusively focused on procurement, this legislation includes provisions to enhance government purchasing efficiency, potentially enabling better support for innovative Canadian businesses. As of September 2, 2025, the bill is under parliamentary review and has not yet been passed, but it represents a key step toward fulfilling the promise.
No major standalone legislation solely dedicated to procurement reform has been passed yet, but related policies, such as those in defence and innovation funding, are being integrated into broader economic plans. For instance, commitments to AI investment and productivity enhancements, pledged during the campaign, are being advanced through budgetary allocations rather than new laws.
Progress on Specific Outcomes
Regarding leveraging government purchasing power to drive innovation, the defence procurement revamp and Major Projects Office indicate steps to prioritize Canadian suppliers, fostering new technologies and solutions. This aligns with solving Canadian problems innovatively, such as through forestry investments addressing housing shortages.
Improvements in efficiency and service delivery are evident in the push for rapid government transformation, as outlined in plans for public sector modernization. Support for SMEs is being addressed via these procurement shifts, with a focus on domestic firms in critical sectors like defence and energy.
However, measurable outcomes, such as increased SME contracts or innovation metrics, are still emerging, given the short time since Carney's election.
Challenges and Risks
Critics, including some media outlets, have noted that while promises were made, clear economic direction has been slow to materialize, with ongoing concerns about productivity and unemployment. If initiatives like the Major Projects Office fail to deliver tangible contracts for Canadian innovators or if legislation stalls, the promise risks being seen as not started or broken.
Overall Status
This promise is in progress.
Sources
- Outlet: Prime Minister of Canada, Article: Prime Minister Carney launches new Major Projects Office to fast-track nation-building projects, URL: https://www.pm.gc.ca/en/news/news-releases/2025/08/29/prime-minister-carney-launches-new-major-projects-office-fast-track-nation-building-projects
- Outlet: BNN Bloomberg, Article: Canada election: Mark Carney promises defence procurement revamp, URL: https://bnnbloomberg.ca/federal-election-2025/2025/04/14/carney-promises-to-revamp-defence-procurement-boost-domestic-research
- Outlet: The Globe and Mail, Article: Carney promises agency to speed up defence purchasing and prioritize Canadian equipment, materials, URL: https://theglobeandmail.com/politics/article-carney-promises-agency-to-speed-up-defence-purchasing-and-prioritize
- Outlet: Canadian Wood Council, Article: Canadian Wood Council Welcomes Federal Investment in Forestry Innovation and Housing Solutions, URL: https://cwc.ca/industry-news/canadian-wood-council-welcomes-federal-investment-in-forestry-innovation-and-housing-solutions/
- Outlet: Toronto Star, Article: Mark Carney’s bill to make Canada a ‘superpower’ is unveiled, URL: https://thestar.com/politics/federal/mark-carneys-bill-to-make-canada-a-superpower-is-unveiled/article_9f1408f3-354f-4865-9004-50004b983ced.html
- Outlet: The Globe and Mail, Article: Where is the clear economic direction that Mark Carney promised?, URL: https://www.theglobeandmail.com/business/commentary/article-mark-carney-promised-clear-economic-direction/
- Outlet: CBC News, Article: Carney's campaign made big promises for AI. Will his government deliver?, URL: https://www.cbc.ca/news/politics/carney-artificial-intelligence-1.7529251
- Outlet: The Hill Times, Article: Carney was talking about Canada’s productivity problem in 2010. It’s now his job to fix it., URL: https://www.hilltimes.com/story/2025/08/25/carney-was-talking-about-canadas-productivity-problem-in-2010-its-now-his-job-to-fix-it/471014/
