Business sector productivity growth is central to Canadians' future prosperity. This article reviews the performance of the Canadian business sector in improving labour and multifactor productivity and examines possible factors underlying recent developments. The article links weak multifactor productivity growth in the Canadian business sector to the weak innovation performance of Canadian firms. The conclusion to this article describes a research program that Industry Canada, in conjunction with others, is carrying out. The research program seeks to identify the reasons for Canada's poor innovation and productivity performance, in order to shed light on actions that can be undertaken to improve productivity growth.
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Find related papers by JEL classification: O12 - Economic Development, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development O21 - Economic Development, Technological Change, and Growth - - Development Planning and Policy - - - Planning Models; Planning Policy O31 - Economic Development, Technological Change, and Growth - - Technological Change - - - Innovation and Invention: Processes and Incentives O51 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - U.S.; Canada
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