TORONTO -- Ontario's governing Liberals are considering new tax credits to reward companies that spend money on research and development.
Finance Minister Charles Sousa says he's also looking at another tax incentive for new spending in equipment, technology and training.
Speaking to members of the Empire Club of Canada, Sousa says many companies are holding on to their cash instead of investing it to improve their productivity.
He says it's important for surplus cash to be invested to boost the province's competitiveness as it recovers from an economic downturn.
Sousa says Ontario's spending on research and development as a proportion of its gross domestic product is significantly lower than the United States.
The minister says many U.S. states are providing R&D tax credits to encourage investment.
Sousa, who's set to deliver his fall economic statement on Thursday, says Ontario is still on track to eliminate its almost $12-billion deficit by 2017-18.
