Want a Stronger Economy? Invest in Women

By Dr. Stephen Lucas, CEO, Mitacs

Women make up approximately 28.5% of Canada’s Gross Domestic Product (GDP), yet only 17% of Canadian SMEs are owned by women, pointing to a gap between their economic contributions and their representation as entrepreneurs. With a growth rate of 6.4% in 2023, nearly four times higher than the national average, women-owned businesses fuel economic growth when properly supported. Despite this, these companies receive little over 4% of venture capital funding. Even when women entrepreneurs do secure investment, they tend to receive fewer rounds of financing and smaller amounts per round compared to their male counterparts, limiting their ability to scale and compete.

This presents a paradox: At a time when Canada faces talent shortages, economic uncertainty, and productivity challenges, we are not fully leveraging the potential of half our population. Addressing these funding disparities and representation gaps isn’t just about equity— it’s an economic necessity. If Canada is to remain competitive, it must do more to invest in and support women-led innovation.

The Cost of Inaction?

Failing to commit resources to women entrepreneurs and researchers means missing out on key opportunities for economic growth. The annual State of Women’s Entrepreneurship (SOWE) in Canada 2024 report indicated that closing the gender gap in economic participation could add up to $150 billion to Canada’s GDP by 2026. But without addressing funding barriers, Canada will continue to forgo the financial and social boost that women’s full participation can bring.

With global economic challenges such as supply chain disruptions and trade instability threatening our overall competitiveness, by leaving women behind we are not just stalling progress— we are undermining our own economic future.

Turning Potential into Impact

Projects by women are driving change, but these innovations often struggle to scale due to a lack of resources and low adoption rates of new technologies. According to Statistics Canada, factors such as risk aversion within the business community, limited awareness of available technologies, and concerns over adoption costs all contribute to Canada’s slow uptake of new tech. What’s more, a shortage of skilled workers who can implement and effectively use these new tools only intensifies the issue, further impeding productivity growth. As a leading innovation organization in Canada, Mitacs plays a key role helping businesses access the talent and R&D resources they need to turn their big ideas into tangible impact. Our unique model bolsters growth and productivity – and supports women-led innovation in the process.??

In the field of clean tech, Dr. Susanne Ouellet, a geotechnical engineer, is advancing the safety and efficiency of tailings dam monitoring using fiber optic sensing technology (Distributed Acoustic Sensing or DAS). Inspired by a devastating tailings dam failure in Brazil, her research enables early detection of slope failure patterns that traditional methods miss, improving the safety of critical infrastructure. Mitacs provided Dr. Ouellet with the necessary international research opportunities and industry partnerships, to not only advance her work but also establish her own company, Lumidas, where she continues to apply DAS technology across various infrastructure sectors. By detecting slope failures earlier, Dr. Ouellet’s work helps to mitigate costs associated with environmental damage and improve the management of infrastructure that is vital to communities and industries alike.

Co-founder of Kalego Solutions and student in infectious diseases, Marine Queffeulou, is applying bioengineering to develop an eco-friendly anti-fog treatment for medical endoscopes using plasma technology. This technology modifies the surface properties of materials to make them anti-fogging and resistant to sterilization cycles, solving a longstanding challenge in medical procedures. By partnering with Mitacs, Kalego Solutions has accelerated its research and business development, with the treatment also showing capability for antibacterial properties, improving patient safety. Through her work, Queffeulou is not only advancing healthcare innovation, she is contributing to the entrepreneurial ecosystem by creating jobs, growing a start-up, and offering cost-saving solutions that improve the efficiency of healthcare systems and extend the lifespan of critical medical equipment.

When we invest in women, everyone wins

Despite impressive strides, women need more resources, targeted funding initiatives, and industry-specific programs that ensure equitable access to strategic partnerships and mentorship. With $1.2B invested in R&D, 12,000+ enterprise partners, and 31,000+ innovations realized since 2018, Mitacs is a driving force in Canadian innovation. Based on a Statistics Canada study, businesses and organizations that partner with Mitacs experience an 11% boost in productivity, a 9% increase in revenue, and a 16% increase in sales over a three-year period. Within our research talent pool, 40% of Mitacs STEM interns identify as female, significantly outpacing the 25% representation of women in Canada’s overall STEM workforce. Additionally, 17% of Mitacs interns go on to start their own business and overall, 85% of participants indicated improved career prospects as a result of their experience.?

For over 25 years, Mitacs has helped our partners effectively scale innovations, from inception to commercialization. We’re moving the economic needle and pushing for broader action and investment in innovation. We know that Canada’s future success depends on innovation. And we simply cannot be successful without women-led enterprise and research. When we invest in women, everyone wins.??

About Mitacs

As Canada’s innovation organization, Mitacs connects businesses and researchers with unrivaled access to talent, financial support, and the partnerships needed to turn ideas into impactful innovations. Through unique collaborations, Mitacs is driving productivity and positioning Canada as a global innovation leader.

Mitacs is funded by the Government of Canada, the Government of Alberta, the Government of British Columbia, Research Manitoba, the Government of New Brunswick, the Government of Newfoundland and Labrador, the Government of Nova Scotia, the Government of Ontario, Innovation PEI, the Government of Quebec, the Government of Saskatchewan, and the Government of Yukon.