Good and timely article.  Branch plant economics doesn't work well in tech because IP goes to the mothership.

Unfortunately, this problem will be exacerbated if the Wednesday's federal budget raises the capital gains taxation rate by 33% or even 50%.  It will make aftertax profits from investing in Canadian companies lower for Canadians, but not foreigners.  It would cause Canadian shareholders to switch to lower risk dividend stock, bonds or GICs instead, and make our growth companies low hanging fruit for foreign owners instead.