The real fix is to provide appropriate incentives to build a technology industry. Unfortunately, programs to date have been rife for abuse and mainly only benefit those who know how to game the system (see the scandals around IRAP/SRED consultants).
The new government has introduced a Canadian equivalent to SBIR, called Innovative Solutions Canada [1], which seems very promising. It's basically a carbon copy of the American SBIR program, which had had a remarkable impact in the US for bootstrapping small high tech firms that are too risky for VCs to the point where they can seek investment.
The other piece of the puzzle is the VC environment. Canada simply does not have a cadre of experienced venture capitalists with access to funds and willingness to take risks. Until that changes, Canadian tech companies will continue to hop the border after reaching a certain size, because it's in their best interest to leave for the US where funding is better.
The new government has introduced a Canadian equivalent to SBIR, called Innovative Solutions Canada [1], which seems very promising. It's basically a carbon copy of the American SBIR program, which had had a remarkable impact in the US for bootstrapping small high tech firms that are too risky for VCs to the point where they can seek investment.
The other piece of the puzzle is the VC environment. Canada simply does not have a cadre of experienced venture capitalists with access to funds and willingness to take risks. Until that changes, Canadian tech companies will continue to hop the border after reaching a certain size, because it's in their best interest to leave for the US where funding is better.
[1] http://www.ic.gc.ca/eic/site/101.nsf/eng/home