Innovation and Business Growth - Op Eds

Published in the Globe and Mail.

There’s something wrong when a narrow interest group can dominate Canadian trade policy. That’s exactly what has happened in the case of the dairy industry, pushing its protectionist agenda on Canadians, not only in getting an ill-considered and self-serving piece of legislation to sail through the House of Commons but in having the Bloc Québécois make final enactment of Bill C-282 a red line for supporting the minority Trudeau government.

Bill C-282 is a Bloc private member’s bill that would exempt the supply managed dairy sector (as well as poultry and eggs) from all future trade negotiations. Even though the bill has already passed the House and is now in the Senate, Bloc Leader Yves-…

Published in The Globe and Mail

A fortnight ago, in response to huge demand, ticket prices surged for the 1990s Britpop band Oasis’s long-awaited reunion tour across Britain and Ireland.

Dynamic pricing – the practice of allowing prices to fluctuate in response to changes in market conditions – is rarely a fan’s favourite. Just ask Wendy’s customers about the chain’s previous plans to introduce it in 2025. But step back and we’ll see that dynamic pricing – when used in the right context and appropriately implemented – fulfills an important role.

If a good or service is in short supply, allowing the price to rise can naturally identify who wants it the most, similar to an auction. It narrows the field of buyers to those…

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…

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…

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…