Tobias Lutke, CEO of Shopify, has called on the Canadian government to cease its practice of using taxpayer money to attract foreign companies. His comments came in response to Industry Minister Mélanie Joly's recent post on X, which celebrated the construction of Nokia's new campus in Ottawa, a project heavily funded by government subsidies.

Lutke criticized these subsidies as detrimental to Canada's tech sector. He stated that they allow foreign firms to operate at a lower cost than Canadian companies, ultimately benefiting the economies of other countries rather than Canada. "The fruits of the subsidized labor will accrue to the wealth of other countries and not Canada," he said.

Joly's post framed the Nokia project as a significant step for Canada’s tech industry, claiming it strengthens digital infrastructure and drives innovation. However, a community note on her post highlighted that Nokia's Ottawa project is receiving $72 million in public funds for approximately 340 jobs, equating to a subsidy of $200,000 per job. The note also described Joly's assertion of Canada leading the global tech race as misleading, given the high cost to taxpayers for foreign jobs.

According to the World Intellectual Property Organization (WIPO), Canada ranks 17th among 139 economies in terms of innovation. The country is 13th for innovation inputs but falls to 20th for innovation outputs. Despite a 2.5% increase in research and development investments from 2013 to 2023, international patent filings from Canadians have decreased by 2.5% over the past decade.

Venture capital investment in Canadian tech has also declined. From 2020 to 2024, venture capital deals dropped by 3.1%, with a notable 9.3% decrease between 2023 and 2024. The INSEAD business school ranks Canada 14th in its 2025 global talent competitiveness rankings, but the country struggles to retain talent, which is essential for fostering a robust tech environment.

Despite Joly's claims, none of the world's ten largest innovation hubs, as measured by WIPO, are located in Canada. These hubs are primarily found in the United States, China, Japan, South Korea, and the United Kingdom. Many Canadians are drawn to the U.S. for higher salaries and a more stable job market, as well as more affordable housing compared to cities like Toronto and Vancouver.

Lucy Hargreaves, CEO of Build Canada, pointed to high taxes, capital gains policies, and bureaucratic obstacles as reasons why tech startups are leaving Canada. Lutke, who emigrated from Germany in 2003 and founded Shopify three years later, represents a rare success story in attracting foreign talent. Shopify is now Canada’s second-largest publicly traded company, with a market capitalization of $221 billion. Lutke's insights on government interventions in the tech sector are informed by his experience and success in the industry, and he has attempted to communicate these concerns to the government.