lets discuss the longstanding structural problems in Canada's economy
Recent assessments reveal longstanding structural problems in Canada's economy, including a persistent inability to achieve meaningful gains in labor productivity. This has led to Canada being projected as the worst-performing economy out of 38 advanced countries over the next forty years (2020-2060), particularly in terms of real GDP per capita growth.
In short Despite efforts by federal and provincial governments to promote commercial innovation, Canada's innovation performance remains relatively weak by international standards. This is reflected in Canada's deteriorating performance relative to national innovation leaders and the United States. There is strong correlation showing a slowdown in Canadian labor productivity growth after 2000, linked to slower rates of innovation at top firms, a decline in innovation diffusion, and a decrease in resource reallocation among firms.
Bias is inherent in us all. We are all born from a history that colours how we view the world and interpret the challenges and triumphs of today. My maternal Acadian ancestors came to North America as early settlers, narrowly escaping the guillotine. So i understand that fates change and times can be tough, sometimes it can be challenging to stay one step ahead.
To be clear on my opinion. Weaknesses in Canadian private sector expenditures on research and development and the difficulty of start-up firms in converting technological opportunities into commercially successful outcomes is why Canada is being projected as the worst-performing economy out of 38 advanced countries over the next forty years, in terms of real GDP per capita growth.
The Canadian government's approach has largely been to subsidize innovation activities through tax credits and direct funding programs. While the federal government's focus on improving the transition from start-ups to successful anchor firms is well-placed, the overall public policy towards innovation is still considered "top-down." This approach has proven to be highly unsuccessful over a long period of time, suggesting a need for a substantial rethinking of innovation strategy.
Consider the unique development of the Cajun culture derived from the Acadians, i.e. French colonists in Canada's Maritime provinces who were expelled in 1755. Identity evolution is complex. Culture adapts to new environment’s, such as the Acadians to Louisiana, by incorporating aspects of local Native American, African, and European cultures. This process of adaptation and cultural blending is known as creolization, and it was the beginning of the transformation of Acadians into Cajuns.
Canada, a country known for its politeness, is ironically not so polite when it comes to fostering business innovation. In the debate about Canada's innovation landscape, there's a tendency among business leaders and politicians to criticize universities and colleges for their perceived role in the country's innovation performance. They often highlight the nation's considerable investment in research and development through higher education institutions compared to its GDP. However, this perspective is somewhat skewed. The high level of spending in this sector isn't largely due to federal government funding. In fact, much of it is self-funded by the institutions, with a significant portion coming from students' tuition fees and provincial education budgets. In contrast, the investment in research and development from the business sector is relatively low, despite Canada offering some of the most attractive subsidies and tax incentives for this purpose within the Organization for Economic Co-operation and Development (OECD). This situation points to a need for a reassessment of where and how innovation is funded and fostered in the Canadian context.
Our complex relationship with natural resources often shapes Canadian discourse on innovation, leading to a somewhat myopic focus. Unlike Taiwan or Israel, whose technological advancements are widely acknowledged, Canada seems preoccupied with the notion that high-tech hardware, from smartphones to aircraft, is the ultimate measure of innovation. It's true that technology has been a cornerstone of innovation since the earliest days of fire-making and tool-crafting. However, it's essential to recognize that technology is typically a conduit, not the ultimate goal, of innovation.
Innovation might be more accurately perceived not as a product but as a state of mind. It embodies the deeply human pursuit of finding superior methods to develop and produce things that hold value for others. Innovation can manifest as either disruptive leaps or gradual enhancements, encompassing a vast array of goods and services.
You see, we've got the brains and the talent, but it's like they're being used to play Jenga rather than building a Silicon Valley North. The result? Our productivity is playing catch-up with, well, almost everyone. Even the OECD is giving us the side-eye, wondering what we're doing up here besides saying 'sorry' a lot.
And innovation? Let's just say if it was a race, we'd still be tying our shoelaces while others are halfway to the finish line. Our approach to innovation is like trying to start a fire with two wet sticks – while the neighbors have flamethrowers.
They're so busy protecting their tiny fish tanks that they've forgotten there's an ocean out there.
