Canada’s Productivity Performance in International Perspective

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Abstract

This article provides an international perspective on Canada’s productivity performance, arguing that over the full 1995-2003 period Canada has actually performed relatively well compared to other OECD countries. Drawing on OECD research on aggregate, industry, and firm-level productivity drivers, it highlights Canada’s strengths — high human capital levels and low barriers to firm creation facilitating creative destruction — while identifying its weakness in innovative capacity as measured by R&D intensity and patents. The article also examines the role of ICT use, organizational change, and firm dynamics in driving multifactor productivity growth across OECD countries.

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