The Canadian specific data gap you're pointing to matters more than it might seem. Simulation models built on US or European data may not capture the structural differences in how Canadian ecosystems operate. If the thesis is that investing broadly works, the question becomes: does the Canadian pool have enough potential homeruns to justify the strategy? That's an empirical question that needs Canadian data to answer.
Under the assumption that Canadian ideas are of no worse quality than those of any other jurisdiction, any real observed difference in the rate of success starting from idea stage can be laid at the feet of friction arising from the ecosystem itself. I have no doubt that Canadian data will show worse performance on average - but anyone pointing at that as proof that this is not worth doing here runs face first into the self-fulfulling nature of risk aversion and will have to make an argument as to why Canadian ideas are somehow worse than those elsewhere.
Also worth noting that most of the data used in this study is on European companies, with only a minority of American companies. The differences there are smaller.
The Canadian specific data gap you're pointing to matters more than it might seem. Simulation models built on US or European data may not capture the structural differences in how Canadian ecosystems operate. If the thesis is that investing broadly works, the question becomes: does the Canadian pool have enough potential homeruns to justify the strategy? That's an empirical question that needs Canadian data to answer.
Under the assumption that Canadian ideas are of no worse quality than those of any other jurisdiction, any real observed difference in the rate of success starting from idea stage can be laid at the feet of friction arising from the ecosystem itself. I have no doubt that Canadian data will show worse performance on average - but anyone pointing at that as proof that this is not worth doing here runs face first into the self-fulfulling nature of risk aversion and will have to make an argument as to why Canadian ideas are somehow worse than those elsewhere.
Also worth noting that most of the data used in this study is on European companies, with only a minority of American companies. The differences there are smaller.