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Innovation and Business Strategy: Why Canada Falls Short

Author

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  • Peter Nicholson

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.

Suggested Citation

  • Peter Nicholson, 2009. "Innovation and Business Strategy: Why Canada Falls Short," International Productivity Monitor, Centre for the Study of Living Standards, vol. 18, pages 51-71, Spring.
  • Handle: RePEc:sls:ipmsls:v:18:y:2009:4
    as

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    File URL: http://www.csls.ca/ipm/18/IPM-18-Nicholson.pdf
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    References listed on IDEAS

    as
    1. John R. Baldwin & Wulong Gu, 2004. "Trade Liberalization: Export-market Participation, Productivity Growth, and Innovation," Oxford Review of Economic Policy, Oxford University Press, vol. 20(3), pages 372-392, Autumn.
    2. Baldwin, John R. & Gu, Wulong, 2007. "Long-term Productivity Growth in Canada and the United States," The Canadian Productivity Review 2007013e, Statistics Canada, Economic Analysis Division.
    3. 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.
    4. Baldwin, John R. & Gu, Wulong, 2005. "Global Links: Multinationals, Foreign Ownership and Productivity Growth in Canadian Manufacturing," The Canadian Economy in Transition 2005009e, Statistics Canada, Economic Analysis Division.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Don Drummond & Evan Capeluck & Matthew Calver, 2015. "The Key Challenge for Canadian Public Policy: Generating Inclusive and Sustainable Economic Growth," CSLS Research Reports 2015-11, Centre for the Study of Living Standards.

    More about this item

    Keywords

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

    JEL classification:

    • M21 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - Business Economics
    • H25 - Public Economics - - Taxation, Subsidies, and Revenue - - - Business Taxes and Subsidies
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O38 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Government Policy
    • O51 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - U.S.; Canada

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