Briefing binder for the Minister of Industry and Minister responsible for Canada Economic Development for Quebec Regions - 2025

About this publication

Publication author: Canada Economic Development for Quebec Regions

Publish date: September 5, 2025

CED: Mandate and Strategic Approach
Intervention Priorities
Means of action (Programs and Initiatives)

CED: Mandate and Strategic Approach

Regional development: Canada’s approach

Regional economic development helps reduce economic disparities among regions and promote balanced, sustainable growth across Canada
This allows for the specific advantages of each region to be leveraged, fosters local job creation and strengthens economic resilience in the face of external shocks

Seven Regional Development Agencies across Canada — **Seven Regional Development Agencies (RDAs)**

Province/Territory	Regional development agency support
Nunavut	Canadian Northern Economic Development Agency (CanNor)
Yukon	Canadian Northern Economic Development Agency (CanNor)
Northwest Territories	Canadian Northern Economic Development Agency (CanNor)
British Columbia	Pacific Economic Development Canada (PacifiCan)
Saskatchewan	Prairies Economic Development Canada (PrairiesCan)
Alberta	Prairies Economic Development Canada (PrairiesCan)
Manitoba	Prairies Economic Development Canada (PrairiesCan)
Ontario	Northern Ontario: Federal Economic Development Agency for Northern Ontario (FedNor) Southern Ontario: Federal Economic Development Agency for Southern Ontario (FedDev Ontario)
Quebec	Canada Economic Development for Quebec Regions (CED)
New Brunswick	Atlantic Canada Opportunities Agency (ACOA)
Newfoundland and Labrador	Atlantic Canada Opportunities Agency (ACOA)
Nova Scotia	Atlantic Canada Opportunities Agency (ACOA)
Prince Edward Island	Atlantic Canada Opportunities Agency (ACOA)

The only federal entities with a mandate firmly rooted in regional dynamics

Deliver programs tailored to all communities in their region, including small and rural communities
Make up part of a continuum of support for businesses, thus ensuring the coherence and complementarity of interventions by:
- Other federal agents
- Provincial and economic players in the regions
High added value:
- Create conditions for growth for, and with, the regions
- Build on local assets and players
- Support flexible, regional solutions focused on SMEs and ecosystems

CED: a key federal partner in Quebec’s regional economic development

Mission

“Promote the long-term economic development of the regions of Quebec by giving special attention to those where slow economic growth is prevalent or where opportunities for productive employment are inadequate.

Foster co-operation and complementarity with Quebec and its communities.” - Section 10 of the Act

We support Quebec's businesses and regions as they transition into the economy of tomorrow—a cleaner, more innovative and more inclusive economy.

By centring our interventions on SMEs, directly or through non-profit economic organizations
By focusing on innovation and diversification as levers of development
By prioritizing projects that generate long-term economic benefits
By doing more than just funding promising projects: CED acts as a facilitator, helping bring together the right partners around a given project

A distinct role within a continuum of federal aid

	Main Clientele	Main Types of Projects	Tageted Sectors	Type of Assistance Offerred	Funding Amount
CNRC-PARI	SMEs	R&D Demonstration	All	Non-repayable Advisory services	Less than $10M	R&D
RDAs	SMEs Ecosystems (NPO)	SMEs: Growth (launch, productivity, commercialization, growth) NPOs: Guidance for SMEs, structuring of regional ecosystems	All (focus on manufacturing and value-added services)	Repayable (interest-free) Non-repayable	Generally less than $3M (e.g.: CED 77% of projects – under $500K)	Flexible regional solutions focused on SMEs and support ecosystems
BDC	SMEs	Variable	All	Commercial loans Risk capital Advisory services	Variable	Commercial bank
Global clusters (ISED)	Ecosystems Businesses	Structuring of national ecosystems Projects involving small and large businesses	5 clusters	Repayable Non-repayable	Variable	R&D commercialization
FSI / Net-Zero Accelerator (ISED)	Large businesses Ecosystems (NPOs/consortia)	R&D Demonstration Commercialization	All	Repayable Non-Repayable	Over $20M (and more above $50M)	Major projects
Canada Growth Fund	Variable	Structural projects for a decarbonized economy	Low-carbon	Multiple tools (debt, equity…)	Variable	Major projects
Sectoral departments	Variable	Variable	Each with its own sector	Non-repayable and repayable	Variable	Sectoral approach

Distinct place-based service offering

National Priorities and Policies

Fuels reflection at the national level
Program design and implementation tailored to actual needs on the ground

An economic development approach rooted in the community (place-based)

Funding tailored to Needs: Provide financial support and ensure risk-sharing, by delivering regional programs that promote growth through innovation, the green transition, and economic diversification; and national initiatives to address targeted economic issues
Credible antennae on the ground: Promote the regional lens and provide on-the-ground intelligence regarding pan-Canadian government programs and for interdepartmental collaborative projects
Coordinated response: Ensure synergy, networking and complementarity of interventions by co-operating with various partners and levels of government (federal, provincial and municipal; Indigenous communities; economic development agencies; universities; and other community stakeholders)
Support: Support SMEs in their forward-looking projects at all stages of their development (referrals, networking, etc.)

Intervention logic based on regional realities

Expertise rooted in the regions with 12 business offices across Quebec

Text version:

Legend:

Head Office
Business Office
Business Offices Territories
High Potential
Low Potential

Regions:

Abitibi Témiscamingue - Nord du Québec
Saguenay - Lac Saint Jean
Côte-Nord
Gaspésie - Îles-de-la-Madeleine
Bas-St-Laurent
Québec - Chaudière-Appalaches
Mauricie
Centre-du-Québec
Cantons-de-l’Est
Inter-regional Initiatives Directorate
Greater Montreal
Outaouais

Interventions modulated based on...

...the reality on the ground

Sub-regional disparities: 75 of the 104 regional county municipalities (RCMs), or 29% of Quebec’s population, have lower economic development potential
Factors that influence development in the various regions: workforce, market access, entrepreneurial pool, single-industry status, demographics, urban and rural areas, resources, Indigenous land, etc.
The strengths and assets specific to each region and upon which they can rely for their economic development

...the broader institutional setting

CED seeks complementarity with the actions of the Government of Quebec and players on the ground
CED has an omnibus decree with the Government of Quebec that facilitates implementation of its programs when dealing with organizations subject to Quebec’s M-30 legislation

An approach that takes Quebec’s specific institutional context into account

A host of key players structure the lives of members of the public and businesses, identify needs, formulate policies and implement interventions

Interventions by CED and the federal government must take into account

The Act that governs intergovernmental affairs: M-30
The Government of Quebec, which actively intervenes and uses these key structures and actors

Actors

Interventionism of provincial government organizations in a number of areas, including digitization, tourism, etc.
Weight and complexity of the patchwork of support organizations (NPOs) in Quebec

Area

17 administrative regions
104 RCMs
1,131 municipalities
Nearly 60 Indigenous communities

Education

Network of CPEs (daycares)
CEGEPs and Université du Québec network
CCTTs: college centres for technology transfer

Economy and business

Investissement Québec
Caisse de dépôt et placement du Québec
Montréal International
Québec International
ORPEX (Exports)
ATRs-ATSs (Tourism)
Sector clusters

Energy and the environment

Hydro-Québec
Horizontal industrial clusters (ÉcoTech, Propulsion QC)

Intervention Priorities

Interventions aligned with Government of Canada priorities...

Results for the population of Canada :

Government of Canada Priorities
CED’s Departmental Plan
CED's implementation Priorities and Budget
Regional Intervention Strategies
Projects

… to address economic issues in Quebec…

Geopolitical tensions (conflicts, protectionism, trade war, resources, industrial transition)
Technologies (artificial intelligence, quantum, energy, genomic)
Demographics (aging, immigration, labour force participation rate among youth, foreign workers)
Environment (warming, natural disasters, government and business standards)

Issues

Important lag in productivity given chronic lack of business investment
Market access threatened by protectionism and supply chain reorganizations
Difficulties in adopting and commercializing innovation
Community prosperity vulnerable to inadequate infrastructure and low attraction of talent and investments
Low entrepreneurship rate and level of ambition that limit industrial renewal and business succession
Matching business needs with available workforce and skills

Taking into account the sectors that structure regional economies...

The importance of SMEs in Quebec, all sectors combined*

More than 275,000 SMEs in Quebec, 72% of which have fewer than 10 employees
SMEs account for 87% of private sector jobs in the province

CED prioritizes manufacturing sectors and high value-added services

CED sees sectors as vectors of long-term structuring growth in a given region

*Source: : Statistics Canada, Business Register 2024-IV and Industry Canada, Key Small Business Statistics (2024)

**Some examples of key sectors by region**

Means of Action (Programs and Initiatives)

Our grant and contribution programs...

Regional Innovation

Support the growth, productivity and competitiveness of SMEs through innovation, and through the development of an innovative regional entrepreneurial environment

Regional Economic Growth through Innovation (REGI)

Community Vitality

Promote the growth of regions and communities by strengthening their entrepreneurial and industrial fabric through economic diversification; the enhancement of their assets, including tourism; the promotion of foreign investment; and support for economic participation

Quebec Economic Development Program (QEDP)
Community Futures Program (CFP)
Economic Development Initiative – Official Languages (EDI-OL)

Temporary and Targeted Support

Develop and implement temporary initiatives to meet specific needs, with dedicated funding
Support for Regional Quantum Innovation (RQI)
Regional Homebuilding Innovation Initiative (RHII)
Regional Artificial Intelligence Initiative (RAII)
Northern Isolated Community Initiatives Fund (NICI)
Tourism Growth Program (TGF)
Regional Tariff Response Initiative (RTRI) - (being developed)

These are initiatives are either national (RQI, RHII, RAII, TGF, RTRI) or pan-regional (NICI) – currently, there is no Quebec-specific initiative underway

Provide direct and indirect support to SMEs at all stages of their development...

CED Support	Launching a business	Innovating	Enhancing Productivity	Commercialization / Accessing Markets
Commercial Projects:
Regional Innovation: Innovative SMEs involved in manufacturing and the provision of innovative high value-added service	Initial sales strategy Launch of production Incubation and acceleration services Entrepreneurship consulting	Prototyping Test bench Specialized resources Technology Readiness Level 6+ Technology transfer Business innovation consulting	Equipment acquisition and installation Implementation of digital systems Business consulting Pooled equipment	Specialized resources Canvassing Website and communication tools Exporting advice Commercialization outside QC/Can
Community Vitality: SMEs involved in manufacturing or the provision of innovative high value-added services of local importance SMEs/NPOs - tourist attractions
Support for SMEs
Regional Innovation: Economic NPOs or those that assist SMEs	Initial sales strategy Launch of production Incubation and acceleration services Entrepreneurship consulting	Prototyping Test bench Specialized resources Technology Readiness Level 6+ Technology transfer Business innovation consulting	Equipment acquisition and installation Implementation of digital systems Business consulting Pooled equipment	Specialized resources Canvassing Website and communication tools Exporting advice Commercialization outside QC/Can
Community Vitality: Economic NPOs (including those in tourism) or those that assist SMEs	Structuring ecosystems Sector networking (clusters) Attracting investment	Structuring ecosystems Sector networking (clusters) Attracting investment	Structuring ecosystems Sector networking (clusters) Attracting investment	Structuring ecosystems Sector networking (clusters) Attracting investment

Through our investment approach

Sharing of financial risks / leveraging efforts

SMEs

Interest-free repayable contributions, generally without guarantee
Repayment moratorium generally two years
Repayment generally spread out over five years after the moratorium

NPOs

Non-repayable contributions

Business-focussed interventions aimed at generating regional benefits

Profile of SMEs Receiving CED Funding (Median*)
Age	9.2
Number of Employees	20
Sales Revenue	$2.7M
Main Area of Activity	Manufacturing

*The median provides a picture of our typical SME clientele. CED does, however, support SMEs of all sizes, and the amount of funding awarded depends on the nature of the project.

Types of NPOs Funded (non-exhaustive)

Industrial clusters
Incubators/accelerators
Technology transfer centres
Promoting and structuring of tourist attractions
Attracting foreign direct investment
Community Futures Development Corporations (CFDCs) / Business Development Centres (BDCs) (in rural areas)

Which materialize into good projects

Regional Innovation
Result : increase the competitiveness and revenues of businesses and sectors
- Québec–Chaudière-Appalaches: $1 million in approved funding for Laserax inc. to commercialize a new technology for the battery sector from an innovative business specializing in industrial laser systems
- Centre-du-Québec: $750,000 in approved funding to Valothanol inc. to launch a business that manufactures second-generation ethanol, in line with the circular economy
- Greater Montréal: $1,884,150 in approved funding to Aéro Montréal for the support provided to aerospace businesses to increase the productivity of the whole
- Abitibi-Témiscamingue–Nord-du-Québec: $1,028,122 in approved funding to Les Maisons Nordique inc. to expand and digitize the factory of a business that manufactures prefabricated houses and modules adapted to northern conditions

Community Vitality
Result : increase the dynamism and attraction of regions
- Outaouais: $1,250,000 in approved funding to L’Organisme Kina8at for the development of an Indigenous touristic and accommodation centre
- Saguenay–Lac-Saint-Jean: $2,803,872 in approved funding to Collectes Coderr to improve the productivity and production capacity of an organization specializing in the disassembly and recovery of small refrigeration appliances
- All regions: $245 million in approved funding to the SADC et CAE du Québec (67 organizations) for the financing and assistance to support local businesses and local development in rural Quebec
Targeted Support
Result : seize opportunities and recover from shocks, in complementarity with regular programming
- Cantons-de-l’est: $5,200,000 in approved funding to DistrictQ to strengthen the innovation capacity and technology transfer of this leading not-for-profit in quantum technology in Quebec
- Côte-Nord: $97,797 in approved funding to Coopérative de solidarité en tourisme équitable to digitalize the services of a business specialized in organising tourist packages
- Gaspésie–Îles-de-la-Madeleine: $162,700 to Les moules de culture des Îles inc. following Fiona Hurricane, restart the economic activity of a business specialized in mariculture.

That produce results and tangible benefits

Total investments: From 2016-2017 to 2023-2024*: $3.866M

Regular Program

Regional Innovation: $1.668M
Community Vitality: $964M

One-time and Targeted Initiatives

Targeted Support: $1.234M

Invested by CED	Invested by its partners in the projects
$1	$3.7

35% of CED's investments are in regions with lower development potential (representing 29% of the population).

* Data based on projects with expenditures up to 2023-2024, and commitments as of October 1 for 2024-2025. Subject to change.

Our budgets: Expenditure profile and trends

Version texte :

Our Expenditures
	2017-2018	2018-2019	2019-2020	2020-2021	2021-2022	2022-2023	2023-2024	2024-2025
Operations	44 590 099	43 282 004	45 785 111	48 563 262	52 701 215	52 551 576	56 006 701	55 065 251
Initiatives	62 482 563	11 463 957	47 562 012	258 209 323	139 958 774	268 731 957	260 904 563	31 554 924
Preg. programs	204 343 221	238 390 883	231 275 603	243 598 198	251 177 741	222 831 187	246 271 538	250 873 119
Total	311 415 883	293 136 844	324 622 726	550 370 783	443 837 730	544 114 720	563 182 802	337 493 294