Submission to the House of Commons Standing Committee on Finance
Pre-Budget Consultations in advance of the Fall 2025 Federal Budget
Submitted on behalf of Canada’s leading Hardtech incubator, ventureLAB, whose mission is to build and scale globally competitive ventures that advance Canada's knowledge-based economy.
Executive Summary
Medical technologies (MedTech) are the backbone of Canada’s healthcare innovation economy. From life-saving surgical tools and diagnostic imaging systems to AI-driven medical devices and digital health platforms, MedTech underpins the delivery of modern healthcare, supports public health security, and fuels economic growth. This sector is critical not only for improving patient outcomes but also for driving advanced manufacturing, export capacity, and skilled employment across Canada.
Yet, Canada risks falling behind. As an example, Canadian hospitals often lack procurement budgets or incentives to adopt domestic innovations, forcing startups to seek validation abroad first. In addition, Canada struggles with limited advanced manufacturing capacity and competition for skilled talent, making it harder to attract and retain MedTech companies. Other nations are making bold, coordinated investments in their MedTech sectors, integrating healthcare innovation into national industrial and economic strategies. Canada lacks a unified national plan, targeted investment, and coordinated support to bring MedTech innovations from concept to commercialization at scale.
To seize this opportunity in Budget 2025, we recommend that the federal government support four national priorities:
1. Develop and implement a National MedTech Strategy.
2. Invest in workforce development to address talent shortages in the MedTech sector.
3. Build national infrastructure to bridge the gap from prototype to market-ready devices.
4. Strengthen advanced medical manufacturing and regulatory capacity
Background
MedTech encompasses a wide range of products and services used to diagnose, treat, and prevent disease, monitor health, and improve quality of life. This includes diagnostic imaging, surgical robotics, implantable devices, wearable monitors, AI-driven diagnostic platforms, and connected health solutions.
According to a Precedence Research report published in December 2024, the global MedTech industry was valued at over USD $570 billion in 2022 and is projected to exceed USD $780 billion by 2030[sd3] . Countries such as the United States, Germany, and Singapore are investing heavily in MedTech R&D, manufacturing infrastructure, and regulatory modernization to accelerate innovation.
In Canada, MedTech employs tens of thousands and drives billions in economic activity[sd4] (According to the MedTech Canada Association) yet faces structural challenges holding back further growth:
• Limited access to specialized facilities for device development and testing.
• Long and complex regulatory pathways.
• Gaps between prototype development and scalable manufacturing.
• Shortages of specialized technical talent.
The Opportunity
Canada has globally recognized strengths in health research, advanced manufacturing, and AI integration. critical pillars for MedTech leadership. We also have a growing base of innovative startups and established firms working in diagnostics, therapeutics, and digital health.
ventureLAB has proposed building a MedTech Innovation Lab in Ontario, as one initiative in building sector infrastructure, offering startups access to design, prototyping, testing, and manufacturing guidance under one roof. Expanding facilities like this nationally would dramatically accelerate commercialization and attract global investment.
Recommendations
1. Develop a National MedTech Strategy
Canada needs a coordinated strategy that integrates MedTech into national industrial policy, healthcare innovation priorities, and trade strategies. This should align federal, provincial, and industry stakeholders to identify comparative advantages, attract investment, and scale innovations domestically.
2. Expand MedTech Workforce Development
Fund targeted training programs in biomedical engineering, regulatory affairs, human factors design, and advanced manufacturing. Partner with academic institutions and industry to develop work-integrated learning opportunities and credentialing programs.
3. Build National Infrastructure to Bridge the Commercialization Gap
Invest in MedTech-focused labs, prototyping centers, and regulatory testbeds across Canada. These should serve as one-stop facilities offering design-for-manufacturing expertise, compliance guidance, and investor readiness support.
4. Strengthen Advanced Medical Manufacturing and Regulatory Capacity
Support domestic manufacturing of high-value, high-complexity devices and streamline regulatory processes. Invest in Health Canada’s review capacity and digital regulatory tools to reduce approval timelines without compromising safety.
Conclusion
Canada stands at a crossroads. A bold, coordinated investment in the MedTech sector will strengthen our healthcare system, drive economic growth, and enhance national resilience. Budget 2025 is the moment to act, by committing to a National MedTech Strategy, investing in talent and infrastructure, and ensuring Canada can compete at the forefront of global healthcare innovation.
We thank the Committee for its consideration and welcome the opportunity to work with the government to ensure Canada’s leadership in MedTech. For more information please contact: sdodds@venturelab.ca
