[gyardley]

Stephen Gordon doesn't know what he's talking about. Take this, for example:

In a market economy, the excess demand for venture capital would be closed by a price adjustment: entrepreneurs would be obliged to accept smaller injections of capital, would have to offer more control of their firms, or some combination of the two.

This is only true if entrepreneurs have to stay entrepreneurs, have to stay in the Canadian market, and have to take venture capital, no matter how crap the deal. Since none of these things are particularly true, Canada ends up with fewer entrepreneurs, emigrating entrepreneurs, and entrepreneurs who simply do without and grow their companies more slowly - and none of those are particularly great for the Canadian economy.