--- canonical_url: "https://csls.ca/ipm-archive/ipm-issue-16/business-sector-productivity-in-canada-what-do-we-know/" title: "Business Sector Productivity in Canada: What Do We Know?" author: name: "CSLS" url: "https://csls.ca/author/cslc/" date_published: "2026-07-13T06:54:02+00:00" date_modified: "2026-07-13T06:54:02+00:00" post_type: "ipm" summary: "" ipm_issue_period: - "Spring 2008" ipm_keyword: - "business sector" - "Canada" - "ICT" - "innovation" - "labour productivity" - "machinery and equipment" - "MFP" - "productivity" - "R&D" ipm_research_theme: - "Productivity trends and comparisons" ipm_country_focus: - "Canada" - "OECD" - "United States" featured_image: "https://csls.ca/wp-content/uploads/2026/06/IPM_50_banner.webp" status: "publish" --- # Business Sector Productivity in Canada: What Do We Know? Canonical URL: https://csls.ca/ipm-archive/ipm-issue-16/business-sector-productivity-in-canada-what-do-we-know/ # Business Sector Productivity in Canada: What Do We Know? [Download full PDF article](https://csls.ca/wp-content/uploads/2026/07/IPM-Issue-16-1-Boothe-Roy.pdf) Cite this article × Cite this article as: Boothe, Paul, and Richard Roy. 2008. “Business Sector Productivity in Canada: What Do We Know?” International Productivity Monitor, No. 16 (Spring 2008): 3–13. https://www.csls.ca/ipm-archive/ipm-issue-16/business-sector-productivity-in-canada-what-do-we-know/ ## Authors: - Paul Boothe Innovation, Science and Economic Development Canada - Richard Roy Innovation, Science and Economic Development Canada ## IPM Issue 16 Spring 2008 pp. 3–13 ## Related IPM articles [Labour Productivity as a Measure of Technological Change Ulrich Kohli Fall 2025 | IPM Issue 49 | pp. 64–81](https://csls.ca/ipm-archive/ipm-issue-49/labour-productivity-as-a-measure-of-technological-change/) [The Relationship between Efficiencies Defenses for Mergers and TFP Growth Robin Shaban Fall 2025 | IPM Issue 49 | pp. 82–102](https://csls.ca/ipm-archive/ipm-issue-49/the-relationship-between-efficiencies-defenses-for-mergers-and-tfp-growth/) [Appendix: Variable Definitions and Country/Sector Coverage for Regulatory Reform Analysis Gilbert Cette, Jimmy Lopez, Giuseppe Nicoletti, Océane Vernerey Fall 2025 | IPM Issue 49 | pp. 1–18](https://csls.ca/ipm-archive/ipm-issue-49/appendix-variable-definitions-and-country-sector-coverage-for-regulatory-reform-analysis/) [Adult Skills and Productivity: New Evidence from PIAAC 2023 Dan Andrews, Balázs Égert, Christine de La Maisonneuve Fall 2025 | IPM Issue 49 | pp. 41–63](https://csls.ca/ipm-archive/ipm-issue-49/adult-skills-and-productivity-new-evidence-from-piaac-2023/) [The Potential Impact of Pro-competitive Regulatory Reforms on Productivity and Growth in Canada Gilbert Cette, Jimmy Lopez, Giuseppe Nicoletti, Océane Vernerey Fall 2025 | IPM Issue 49 | pp. 3–40](https://csls.ca/ipm-archive/ipm-issue-49/the-potential-impact-of-pro-competitive-regulatory-reforms-on-productivity-and-growth-in-canada/) [IPM Issue 49 Editors’ Overview Andrew Sharpe, Bart van Ark, Paul Schreyer Fall 2025 | IPM Issue 49 | pp. 1–2](https://csls.ca/ipm-archive/ipm-issue-49/) [Appendix: UK Productivity Growth Rates Across Data Vintages and Studies Josh Martin Spring 2025 | IPM Issue 48 | pp. 65–73](https://csls.ca/ipm-archive/ipm-issue-48/appendix-uk-productivity-growth-rates-across-data-vintages-and-studies/) [Opportunities and Risks of Artificial Intelligence for Productivity Francesco Filippucci, Peter Gal, Katharina Laengle, Matthias Schief, Filiz Unsal Spring 2025 | IPM Issue 48 | pp. 1–26](https://csls.ca/ipm-archive/ipm-issue-48/opportunities-and-risks-of-artificial-intelligence-for-productivity/) [Using Ecosystem Accounting to Integrate the Environment in Measures of Multifactor Productivity Carl Obst Fall 2024 | IPM Issue 47 | pp. 87–108](https://csls.ca/ipm-archive/ipm-issue-47/using-ecosystem-accounting-to-integrate-the-environment-in-measures-of-multifactor-productivity/) [Eroding Natural Capital: An Alternative Explanation for the Secular Decline in Productivity Growth Christina Caron Fall 2024 | IPM Issue 47 | pp. 109–147](https://csls.ca/ipm-archive/ipm-issue-47/eroding-natural-capital-an-alternative-explanation-for-the-secular-decline-in-productivity-growth/) ## Abstract ## Résumé EN FR Copy link Email LinkedIn Business sector productivity growth is central to Canadians’ future prosperity. This article reviews the performance of the Canadian business sector in improving labour and multifactor productivity and examines possible factors underlying recent developments. The article links weak multifactor productivity growth in the Canadian business sector to the weak innovation performance of Canadian firms. The conclusion to this article describes a research program that Industry Canada, in conjunction with others, is carrying out. The research program seeks to identify the reasons for Canada’s poor innovation and productivity performance, in order to shed light on actions that can be undertaken to improve productivity growth. IN THE FUTURE, more than in the past, labour La croissance de la productivité du secteur des entreprises est au cœur de la prospérité future des Canadiens. Cet article passe en revue la performance du secteur des entreprises canadien dans l’amélioration de la productivité du travail et de la productivité multifactorielle, et examine les facteurs possibles sous-jacents aux développements récents. L’article relie la faible croissance de la productivité multifactorielle dans le secteur des entreprises canadien à la faible performance d’innovation des entreprises canadiennes. La conclusion de cet article décrit un programme de recherche qu’Industrie Canada mène en collaboration avec d’autres partenaires, visant à cerner les raisons de la mauvaise performance du Canada en matière d’innovation et de productivité, afin d’éclairer les mesures qui peuvent être prises pour améliorer la croissance de la productivité. [Download full PDF](https://csls.ca/wp-content/uploads/2026/07/IPM-Issue-16-1-Boothe-Roy.pdf)