Eichenbaum, Alexopoulos, and Kronick – Lagging Productivity not Just a Number, it’s Making us Poorer
From: Martin Eichenbaum, Michelle Alexopoulos and Jeremy M. Kronick To: Canadians concerned about prosperity Date: August 14, 2024 Re: Lagging Productivity not Just a Number, it’s Making us Poorer Since 1985, US labour productivity has grown by roughly 100 percent. In sharp contrast, labour productivity in Canada is up 40 percent. Canadian workers are now only 70 percent as […] Eichenbaum, Alexopoulos, Kronick – Economists must convince the public that productivity isn’t just a number
Published in The Globe and Mail.
Since 1985, U.S. labour productivity has grown by roughly 100 per cent. In sharp contrast, labour productivity in Canada grew by only 40 per cent. Canadian workers are now only 70 per cent as productive as U.S. workers. And we’re not just falling behind the U.S. – the growth rate of our productivity is well below that of the U.K., Germany and France.
Economists have long been aware of our productivity malaise, but we need a broader audience. Public support can help solve the problem, and this requires showing Canadians how productivity gains improve their lives.
To see the benefits of higher productivity, consider the following example: Suppose a firm with 100 workers produces 100…
Graph of the Week: Canadian IP Payments and Receipts
Introducing Graph of the Week, a new series from the C.D. Howe Institute’s Graphic Intelligence that presents valuable and easily digestible data. Each Monday we will unveil one new captivating chart or graph with interesting insights, explaining it in two-to-three sentences. Dive into the data with us. The gap between these two lines reflects the Canadian balance-of-payments deficit […] Lewis, Dupuy – Nostalgia Should Not Drive Ontario’s Economic Development Policy
From: Brian Lewis and Damian Dupuy To: Ontario Economy Observers Date: July 25, 2024 Re: Nostalgia Should Not Drive Ontario’s Economic Development Policy Despite bold promises and billions of dollars of support, Ontario manufacturing jobs remain around the same level as when Doug Ford’s Progressive Conservatives came to power. The province needs to move past the nostalgic view of […] John Lester – Rethinking How We Support R&D
To: Canadians Concerned About Innovation From: John Lester Date: July 9, 2024 Re: Rethinking How We Support R&D After two rounds of consultations, Finance Canada is considering reforms to its scientific research and experimental development (SR&ED) program. The review takes place against the backdrop of distressingly poor productivity performance, worries about the amount and effectiveness of R&D performed in Canada, […] John Lester – Size shouldn’t matter for R&D business subsidies
Published in the Financial Post
After two rounds of consultations, Finance Canada is considering reforms to its scientific research and experimental development (SR&ED) program. The review takes place against the backdrop of distressingly poor productivity performance and worries about the amount and effectiveness of R&D performed in Canada and the incentives for innovative startups to commercialize and scale-up their operations.
These concerns exist even though the federal government spent almost $11 billion last year to support innovation. Innovative firms get support to: hire skilled workers, perform R&D, commercialize inventions and scale-up their operations.
The program review should recognize where…
John Lester – Size shouldn’t matter for R&D business subsidies
Published in the Financial Post
After two rounds of consultations, Finance Canada is considering reforms to its scientific research and experimental development (SR&ED) program. The review takes place against the backdrop of distressingly poor productivity performance and worries about the amount and effectiveness of R&D performed in Canada and the incentives for innovative startups to commercialize and scale-up their operations.
These concerns exist even though the federal government spent almost $11 billion last year to support innovation. Innovative firms get support to: hire skilled workers, perform R&D, commercialize inventions and scale-up their operations.
The program review should recognize where…
Dan Ciuriak – Industrial Policy Lessons from a Dairy Pot Calling Canada’s Kettle Black
From: Dan Ciuriak To: Canadian Trade Watchers Date: July 3, 2024 Re: Industrial Policy Lessons from a Dairy Pot Calling Canada’s Kettle Black Industrial policy is very much in vogue these days as major economies battle to dominate the key battlegrounds of artificial intelligence and the supporting technological infrastructure of data and computer chip manufacturing; biotechnology; and green-tech manufacturing. […] Smart, Runge – Risk Aversion is Hampering our Industrial Offset Policy
From: Ken Smart and Tim RungeTo: Canadian Productivity WatchersDate: June 28, 2024Re: Risk Aversion is Hampering our Industrial Offset PolicyThe peace dividend enjoyed since the end of the Cold War has been suspended – though Canada appears to struggle with this emerging truth. Conflicts that many considered unthinkable, and threats previously dismissed as products of an overactive imagination […] DeLand, Gilmour – Canada Needs More Major Project Investment: Here Are Some Ideas
To: Canadian major project watchers From: Charles DeLand and Brad Gilmour Date: April 16, 2024 Re: Canada Needs More Major Project Investment: Here Are Some Ideas It has not been easy for Canadian companies to plan and complete major projects in Canada recently. Hydroelectric dams, pipelines, mines, rail hubs, and port expansions and others are […]Webcast – Empty Seats: How Labour Shortages are Impacting SMEs
The other immigration problem: Too much talent is leaving Canada – Globe and Mail
Surging immigration numbers are top-of-mind for Canadians. But as we reconsider targets for newcomers and address pain points such as housing, we also need to pay attention to talent retention.
Tens of thousands of people leave Canada every year, many of them talented and entrepreneurial people we will miss. Importantly, a significant fraction are themselves immigrants, which may mean we are missing an opportunity to boost Canada’s long-term growth and prosperity.
A recent study by Statistics Canada, using a data set that combines detailed immigration department data with a Canada Revenue Agency database, highlights the significant phenomenon of emigration among immigrants in Canada. The overall…