Considering the entire 1995-2003 period and compared to all OECD countries, this paper presents the view that Canada has actually performed quite well in terms of labour productivity growth. The author points to two factors that have fostered productivity growth in Canada: a high level of human capital and low barriers to firm creation. The latter facilitates creative destruction by allowing new firms to challenge existing firms and force less productive firms out of the market. Canada also appears to have benefited from innovation driven by ICT use and related organizational change, especially in the service sector. One weakness highlighted is innovative capacity, as Canada generally lags most other countries in terms of R&D intensity and patents.
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Find related papers by JEL classification: O47 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Measurement of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity D24 - Microeconomics - - Production and Organizations - - - Production; Capital and Total Factor Productivity; Capacity O51 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - U.S.; Canada O57 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries
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