I'd strongly suggest against blur algorithms unless you are blurring some already-existing drawing that is complex.
For your case, just draw a rect with a radial gradient.
var radgrad = ctx.createRadialGradient(60,60,0,60,60,60);
radgrad.addColorStop(0, 'rgba(255,0,0,1)');
radgrad.addColorStop(0.8, 'rgba(228,0,0,.9)');
radgrad.addColorStop(1, 'rgba(228,0,0,0)');
// draw shape
ctx.fillStyle = radgrad;
ctx.fillRect(0,0,150,150);
Example:
http://jsfiddle.net/r8Kqy/48/
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