Template-Type: ReDIF-Article 1.0 Author-Name: Andrew Sharpe Author-Email: andrew.sharpe@csls.ca Title: Editor’s Overview Abstract: THIS 18TH ISSUE OF THE International Productivity Monitor published by the Centre for the Study of Living Standards contains seven articles. Topics covered are the relationship between education, productivity and economic growth, new estimates of multifactor productivity for the Canadian provinces, the World Productivity Database developed by the United National Industrial Development Organization (UNIDO), and a symposium on the recently released Council of Canadian Academies Expert Panel report on business innovation in Canada. Classification-JEL: Y2 Keywords: Productivity, Education, Growth, Multifactor productivity, Innovation, Journal: International Productivity Monitor Pages: 1-2 Volume: 18 Year: 2009 Month: Spring File-URL: http://www.csls.ca/ipm/18/IPM-18-editoroverview.pdf File-Format: Application/pdf Handle: RePEc:sls:ipmsls:v:18:y:2009:0 Template-type: ReDIF-Article 1.0 Author-Name: Serge Coulombe Author-Email: Serge.Coulombe@uottawa.ca Author-Name: Jean-Francois Tremblay Author-Email: Jean-Francois.Tremblay@uottawa.ca Title: Education, Productivity and Economic Growth: A Selective Review of the Evidence Abstract: We review a selection of the theoretical and empirical literature on human capital and growth that appear to provide the most relevant insights for policy development in the Canadian context. We first focus on the extension of the neo-classical growth model with the inclusion of human capital in an open economy framework, and discuss its empirical applications to the Canadian economy. We also examine other issues such as the returns to education and the distance from the technological frontier, the microeconomic versus macroeconomic return to education, and the quantity versus quality of education. Although the levels of investment in education and the overall quality of the educational system in Canada are fairly high, we argue that the returns of additional investments in post-secondary education could still be substantial since Canada is relatively close to the technology frontier. Classification-JEL: H52, I20, I21, I28 Keywords: Human Capital, Growth, Policy, education, technological frontier, education quality, Journal: International Productivity Monitor Pages: 3-24 Volume: 18 Year: 2009 Month: Spring File-URL: http://www.csls.ca/ipm/18/IPM-18-Coulombe-Tremblay.pdf File-Format: Application/pdf Handle: RePEc:sls:ipmsls:v:18:y:2009:1 Template-type: ReDIF-Article 1.0 Author-Name: Andrew Sharpe Author-Email: andrew.sharpe@csls.ca Author-Name: Jean-Francois Arsenault Author-Email: jf.arsenault@csls.ca Title: New Estimates of Multifactor Productivity Growth for the Canadian Provinces Abstract: This article presents new estimates of multifactor productivity for the Canadian provinces for the 1997-2007 period. In contrast to earlier estimates, these estimates incorporate both changes in labour and capital composition or quality. Reflecting differences in labour productivity and capital productivity, multifactor productivity growth varies greatly by province. Newfoundland enjoyed the strongest multifactor productivity growth and Alberta the weakest. Classification-JEL: C82, O14, O15, O47, Keywords: multifactor productivity, labour composition, capital composition, capital quality, labour quality, Journal: International Productivity Monitor Pages: 25-37 Volume: 18 Year: 2009 Month: Spring File-URL: http://www.csls.ca/ipm/18/IPM-18-Sharpe-Arsenault.pdf File-Format: Application/pdf Handle: RePEc:sls:ipmsls:v:18:y:2009:2 Template-type: ReDIF-Article 1.0 Author-Name: Anders Isaksson Author-Email: a.isaksson@unido.org Title: The UNIDO World Productivity Database: An Overview Abstract: This article introduces a new unique database, the World Productivity Database (WPD), which contains information on levels and growth of aggregate total factor productivity (TFP) for up to 112 countries, covering the period 1960 to 2000. At its core are numerous measurement methods, variations in functional forms and specifications — including schooling and health — of the production function, constant and variable returns to scale, as well as measures of technical progress and change in technical efficiency. In addition, five labour and four capital stock measures are used to derive a variety of TFP measures. Another significant feature is TFP forecasts for the period of 2001-2010. Classification-JEL: C82, O47, O11, R11 Keywords: Productivity, total factor productivity, labour input, capital input, cross-country comparison Journal: International Productivity Monitor Pages: 38-50 Volume: 18 Year: 2009 Month: Spring File-URL: http://www.csls.ca/ipm/18/IPM-18-Isaksson.pdf File-Format: Application/pdf Handle: RePEc:sls:ipmsls:v:18:y:2009:3 Template-type: ReDIF-Article 1.0 Author-Name: Peter Nicholson Title: Innovation and Business Strategy: Why Canada Falls Short 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. Classification-JEL: M21, H25, O31, O38, O51 Keywords: Innovation, productivity, business strategy, public policy, market structure, Competition, business climate, business ambition Journal: International Productivity Monitor Pages: 51-71 Volume: 18 Year: 2009 Month: Spring File-URL: http://www.csls.ca/ipm/18/IPM-18-Nicholson.pdf File-Format: Application/pdf Handle: RePEc:sls:ipmsls:v:18:y:2009:4 Template-type: ReDIF-Article 1.0 Author-Name: Richard Hawkins Title: Is Canada Really All That Bad At Innovation?: A Tale of Two Industries Abstract: This commentary raises questions about the degree to which global innovation indicators enable us to understand the historical dynamics of innovation in Canada, and about future directions for Canadian innovation policy. By focusing on the automotive and telecommunications sectors, two currently troubled Canadian industries with completely different histories, some of the major successes and mistakes of Canadian industrial policy are assessed critically. The conclusion is that the innovation problem in Canada has less to do with capabilities or opportunities, than with recent tendencies not to follow through when ambitious innovation initiatives in specific industries could be transformed into new national "engines of growth". Classification-JEL: N92, O31, O38 Keywords: Review, Innovation, productivity, telecommunications industry, automotive industry, research and development, Journal: International Productivity Monitor Pages: 72-79 Volume: 18 Year: 2009 Month: Spring File-URL: http://www.csls.ca/ipm/18/IPM-18-Hawkins.pdf File-Format: Application/pdf Handle: RePEc:sls:ipmsls:v:18:y:2009:5 Template-type: ReDIF-Article 1.0 Author-Name: Jorge Niosi Title: Bridging Canadian Technology SMEs Over the Valley of Death Abstract: This comment analyses the Panel report and finds that its main diagnosis is correct: Canada's BERD is low. The Panel report is fairly silent about the necessary improvements to Canada's innovation system. This comment suggests that while Canada's tax credit for R&D and Industrial Research Assistance Program (IRAP) are useful programs, they need to be complemented by other direct incentives that may help small technology firms to cross the "valley of death", complete proof of concept and become eligible to venture capital. The US Small Business Innovation Research (SBIR) program, imitated by Japan, is the best model for such an incentive and Canada should consider its adoption. Classification-JEL: H25, O31, O38, O51 Keywords: Review, innovation, productivity, Industrial Research Assistance Program, Small Business Innovation Research program, public policy Journal: International Productivity Monitor Pages: 80-84 Volume: 18 Year: 2009 Month: Spring File-URL: http://www.csls.ca/ipm/18/IPM-18-Niosi.pdf File-Format: Application/pdf Handle: RePEc:sls:ipmsls:v:18:y:2009:6 Template-type: ReDIF-Article 1.0 Author-Name: Ian A. Stewart Title: Some Reflections on the Expert Panel Report on Business Innovation in Canada Abstract: This article reviews the Council of Canadian Academies Expert Panel report on business innovation. It finds the report comprehensive in its gathering and assessment of available research, innovative, in its own right, in its analysis of innovation as an outcome of business strategy formation, and impressively well ordered and written. Both lay readers and professional students of innovation and labour productivity will find the report to be of great value. Classification-JEL: H25, O31, O38, O51 Keywords: Review, innovation, productivity Journal: International Productivity Monitor Pages: 85-88 Volume: 18 Year: 2009 Month: Spring File-URL: http://www.csls.ca/ipm/18/IPM-18-Stewart.pdf File-Format: Application/pdf Handle: RePEc:sls:ipmsls:v:18:y:2009:7