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Innovation and Business Strategy: Why Canada Falls Short

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  • Peter Nicholson
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    Abstract

    This article compares the development of labour productivity in the Swedish and the Finnish business sectors and the role of the information and communication technology (ICT) sector in this process. The results show that the Finnish productivity level has been converging towards the Swedish level, but that there is still a significant difference. This trend has coincided with the growing importance of the ICT sector, especially since the mid 1990s. Due to higher productivity and employment growth, the Finnish ICT sector has contributed to this convergence. This is explained by the electrical engineering industry. The Nokia effect has been stronger than the Ericsson effect.

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    File URL: http://www.csls.ca/ipm/18/IPM-18-Nicholson.pdf
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    Bibliographic Info

    Article provided by Centre for the Study of Living Standards in its journal International Productivity Monitor.

    Volume (Year): 18 (2009)
    Issue (Month): (Spring)
    Pages: 51-71

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    Handle: RePEc:sls:ipmsls:v:18:y:2009:4

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    Related research

    Keywords: Innovation; productivity; business strategy; public policy; market structure; Competition; business climate; business ambition;

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    1. Gu, Wulong & Baldwin, John R., 2005. "Global Links: Multinationals, Foreign Ownership and Productivity Growth in Canadian Manufacturing," The Canadian Economy in Transition 2005009e, Statistics Canada, Economic Analysis.
    2. Someshwar Rao & Jianmin Tang & Weimin Wang, 2008. "What Explains the Canada-US Labour Productivity Gap?," Canadian Public Policy, University of Toronto Press, vol. 34(2), pages 163-192, June.
    3. Gu, Wulong & Baldwin, John R., 2007. "Long-term Productivity Growth in Canada and the United States," The Canadian Productivity Review 2007013e, Statistics Canada, Economic Analysis.
    4. Baldwin, John R., 2004. "Trade Liberalization: Export-market Participation, Productivity Growth and Innovation," Economic Analysis (EA) Research Paper Series 2004027e, Statistics Canada, Analytical Studies Branch.
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