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Productivity: A Key to Canadian Innovation and Prosperity

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Canada ranks 17th out of 24 OECD countries on productivity. Many consider productivity to mean “working harder for less pay,” but a more accurate definition would be “output per hour of work” or “combined output from labour and capital.” General disinterest in and misunderstanding about productivity impedes necessary actions being taken to fix Canada’s looming crisis. As this article explains, reasons for Canada’s productivity deficit include its abundance of small businesses, which generally invest less in R&D; Canadian governmental and private-sector under-investment in information technology; unfavourable taxation; and inertia due to unions’ demands. Yet there are various opportunities for Canada to boost productivity, including implementing more government policy that addresses barriers to competition and growth and promotes technology and education investment; researching opportunities in the private sector and applying them in the public sector; and investing in teams, processes, and equipment. This article, based on interviews with business executives who have overseen significant change, finishes by detailing various enablers of productivity, including technology investment; strategic leadership; better workplace cultures with a stronger sense of teamwork and increased training; and an entrepreneurial mindset.
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