Canada's Productivity Performance in International Perspective
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.
Volume (Year): 10 (2005)
Issue (Month): (Spring)
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