This working paper explores how US-based big tech corporations use their corporate venture capitalist (CVC) arms to heavily influence the development of emerging technologies by shaping which innovations receive funding. This dominance incentivizes external venture capitalist (VC) firms to back start-ups that align with big tech interests, skewing technological development to secure and sustain monopoly positions. VC firms prioritize start-ups with easily scalable intangible assets, such as algorithms and data sets, making them more malleable to VC influence, as well as stifling competition and hindering diverse innovation. Canadian start-ups rely heavily on US-based venture capital, leading to a concentration of wealth and knowledge in the American economy, limiting the growth of a robust domestic tech ecosystem and aligning Canadian innovation with big tech corporate agendas. A second Trump presidency, already demonstrating its alignment with big tech interests, is predicted to promote further deregulation and protectionist policies, presenting a critical moment for Canada to adopt a “Canada-first” approach by strengthening its tech sector, fostering global collaborations and creating incentives to retain and empower its tech talent.
