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Innovation and Business Strategy: Why Canada Falls Short

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  • Peter Nicholson

Abstract

This article compares the development of labour productivity in the Swedish and the Finnish business sectors and the role of the information and communication technology (ICT) sector in this process. The results show that the Finnish productivity level has been converging towards the Swedish level, but that there is still a significant difference. This trend has coincided with the growing importance of the ICT sector, especially since the mid 1990s. Due to higher productivity and employment growth, the Finnish ICT sector has contributed to this convergence. This is explained by the electrical engineering industry. The Nokia effect has been stronger than the Ericsson effect.

Suggested Citation

  • Peter Nicholson, 2009. "Innovation and Business Strategy: Why Canada Falls Short," International Productivity Monitor, Centre for the Study of Living Standards, vol. 18, pages 51-71, Spring.
    • Handle: RePEc:sls:ipmsls:v:18:y:2009:4
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    File URL: http://www.csls.ca/ipm/18/IPM-18-Nicholson.pdf
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    References listed on IDEAS

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    1. Duanjie Chen & Jack M. Mintz, 2008. "Limited Horizons: The 2008 Report on Federal and Provincial Budgetary Tax Policies," C.D. Howe Institute Commentary, C.D. Howe Institute, issue 270, July.
    2. International Monetary Fund, 2008. "Canada: Financial System Stability Assessment-Update," IMF Staff Country Reports 2008/059, International Monetary Fund.
    3. John R. Baldwin & Wulong Gu, 2004. "Trade Liberalization: Export-market Participation, Productivity Growth, and Innovation," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 20(3), pages 372-392, Autumn.
    4. Baldwin, John R. Gu, Wulong, 2007. "Long-term Productivity Growth in Canada and the United States," The Canadian Productivity Review 2007013e, Statistics Canada, Economic Analysis Division.
    5. John R. Baldwin & Wulong Gu, 2004. "Trade Liberalization: Export-market Participation, Productivity Growth, and Innovation," Oxford Review of Economic Policy, Oxford University Press, vol. 20(3), pages 372-392, Autumn.
    6. Someshwar Rao & Jianmin Tang & Weimin Wang, 2008. "What Explains the Canada-US Labour Productivity Gap?," Canadian Public Policy, University of Toronto Press, vol. 34(2), pages 163-192, June.
    7. Baldwin, John R. Gu, Wulong, 2005. "Global Links: Multinationals, Foreign Ownership and Productivity Growth in Canadian Manufacturing," The Canadian Economy in Transition 2005009e, Statistics Canada, Economic Analysis Division.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Andrew Sharpe & Ricardo de Avillez, 2012. "A Detailed Analysis of Nova Soctia;s Productivty Performance, 1997-2010," CSLS Research Reports 2012-05, Centre for the Study of Living Standards.
    2. Someshwar Rao, 2011. "Insights from Latin America for Canada: A Review Article on The Age of Productivity: Transforming Economies from the Bottom Up," International Productivity Monitor, Centre for the Study of Living Standards, vol. 21, pages 70-81, Spring.
    3. Anton Miglo, 2020. "Financing of Entrepreneurial Firms in Canada: Some Patterns," Administrative Sciences, MDPI, vol. 10(3), pages 1-27, August.
    4. Jonathan Barr & Peter Foltin & Jianmin Tang, 2023. "Recent Productivity Trends in Canada: Navigating the Twin Transitions of Green and Digitalization," International Productivity Monitor, Centre for the Study of Living Standards, vol. 45, pages 93-119, Fall.
    5. Don Drummond & Evan Capeluck & Matthew Calver, 2015. "The Key Challenge for Canadian Public Policy: Generating Inclusive and Sustainable Economic Growth," CSLS Research Reports 2015-11, Centre for the Study of Living Standards.
    6. Marcel Côté & Roger Miller, 2012. "Stimulating Innovation: Is Canada Pursuing the Right Policies?," International Productivity Monitor, Centre for the Study of Living Standards, vol. 23, pages 3-16, Spring.

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    More about this item

    Keywords

    Innovation; productivity; business strategy; public policy; market structure; Competition; business climate; business ambition;
    All these keywords.

    JEL classification:

    • M21 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - Business Economics
    • H25 - Public Economics - - Taxation, Subsidies, and Revenue - - - Business Taxes and Subsidies
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O38 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Government Policy
    • O51 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - U.S.; Canada

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