Looking beyond innovation to boost Canada’s productivity
Canada’s ability to improve productivity is crucial for its competitiveness, economic prosperity and long-term growth. Over the past decade, policy-makers have tried to find ways to revive Canada’s productivity growth, but have had little success. Primarily, they have looked to improve the country’s innovation performance as a way to boost productivity.
There are many factors outside innovation that impact a firm’s productivity; those factors include:
- size of firm
- firm export orientation and participation in global value chains
- investment in intangible capital
- sector and regional affiliations
- forms of ownership
Chartered Professional Accountants of Canada (CPA Canada)’s economic research details the impact of these factors on firm’s and country’s productivity. Our research also highlights options policy-makers may wish to consider when developing a response to economic challenges caused by slow productivity growth.