--- canonical_url: "https://csls.ca/research/explaining-industry-differences-in-it-investment-per-worker-between-canada-and-the-united-states-2002-2013/" title: "Explaining Industry Differences in IT Investment Per Worker Between Canada and the United States, 2002-2013" author: name: "CSLS" url: "https://csls.ca/author/cslc/" date_published: "2026-07-02T12:51:21+00:00" date_modified: "2026-07-02T12:51:21+00:00" post_type: "research" summary: "" post_tag: - "Canada" - "human capital" - "ICT investment" - "industry differences" - "information technology" - "measurement" - "productivity" - "software investment" - "United States" country_focus: - "Canada" - "United States" province_region: - "National" research_theme: - "Productivity and Economic Measurement" - "Technology and Innovation" featured_image: "https://csls.ca/wp-content/uploads/2026/07/old-reports_hero_banner_bg.webp" status: "publish" --- # Explaining Industry Differences in IT Investment Per Worker Between Canada and the United States, 2002-2013 Canonical URL: https://csls.ca/research/explaining-industry-differences-in-it-investment-per-worker-between-canada-and-the-united-states-2002-2013/ # Explaining Industry Differences in IT Investment Per Worker Between Canada and the United States, 2002-2013 [Download full PDF report](https://csls.ca/pdf/csls2016-01-1.pdf) Cite this report × Cite this report as: Thomas, Jasmin. 2016. “Explaining Industry Differences in IT Investment Per Worker Between Canada and the United States, 2002-2013.” CSLS Research Report 2016-01. Ottawa: Centre for the Study of Living Standards. https://csls.ca/research/explaining-industry-differences-in-it-investment-per-worker-between-canada-and-the-united-states-2002-2013/ ## Author: - Jasmin Thomas Centre for the Study of Living Standards (CSLS) ## Report 2016-01 March 2016 226 pages ## Related research [Measuring the Appropriate Outcomes for Better Decision-Making: A Framework to Guide the Analysis of Health Policy Matthew Calver March 2016 | Report 2016-03 | 132 pages](https://csls.ca/research/measuring-the-appropriate-outcomes-for-better-decision-making-a-framework-to-guide-the-analysis-of-health-policy-2016-03/) [Living Standards Domain of the Canadian Index of Wellbeing Andrew Sharpe, Christopher Ross November 2011 | Report 2011-17 | 124 pages](https://csls.ca/research/living-standards-domain-of-the-canadian-index-of-wellbeing-2011-17/) [Productivity: Key to Economic Success Centre for the Study of Living Standards (CSLS) March 1998 | Report 1998-01 | 99 pages](https://csls.ca/research/productivity-key-to-economic-success/) [Apprenticeship in Canada: A Training System Under Siege? 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Many studies have shown that lower ICT investment per worker in Canada compared to the United States is responsible for weaker productivity growth in Canada. In the past, attention has been focused on the aggregate gap, but 49.8 per cent of lower business sector IT investment in Canada relative to the United States in 2013 was explained by two industries: information and cultural industries and professional, scientific and technical services, which accounted for only 13.0 per cent of employment (IT investment is composed of computers and software investment, while ICT investment is composed of computers, communications, and software investment). The main objective of this report is to shed light on the possible reasons for the gap in these sectors even though other industries contributing to the gap are also analyzed. A number of explanations will be examined, including data measurement and comparability issues stemming from methodological differences between statistical agencies in Canada and the United States, and differences in potential explanatory variables of IT investment, such as human capital, taxation, profits, firm creation rates, industrial structure, and regulation, among others. This report finds that software investment in information and cultural industries and professional, scientific and technical services is responsible for 45.9 per cent of the total IT investment per worker gap between Canada and the United States. The report also finds that measurement issues likely account for a significant share of the software investment gap in professional, scientific and technical services, and subsequently, account for a large share of the total IT investment per worker gap. Other explanations, such as human capital, regulation, firm size, managerial education, and labour compensation likely play a smaller role in this industry. In contrast, measurement issues likely account for much less of the information and cultural industries software gap between Canada and the United States, meaning that explanations such as human capital, managerial education, labour compensation and firm size, are more likely to play a larger role in this industry. En 2013, les entreprises canadiennes n’investissaient qu’environ la moitié, par travailleur, de ce qu’investissaient leurs homologues américaines dans les technologies de l’information et des communications (TIC). De nombreuses études ont montré que le plus faible investissement en TIC par travailleur au Canada par rapport aux États-Unis explique la croissance plus faible de la productivité au Canada. Par le passé, l’attention portait sur l’écart global, mais 49,8 % du plus faible investissement en TI du secteur des entreprises au Canada par rapport aux États-Unis en 2013 s’expliquait par deux industries : les industries de l’information et de la culture ainsi que les services professionnels, scientifiques et techniques, qui ne représentaient que 13,0 % de l’emploi (l’investissement en TI comprend l’investissement en ordinateurs et en logiciels, tandis que l’investissement en TIC comprend l’investissement en ordinateurs, en communications et en logiciels). L’objectif principal de ce rapport est d’éclairer les raisons possibles de cet écart dans ces secteurs, bien que d’autres industries contribuant à l’écart soient également analysées. Plusieurs explications sont examinées, notamment les enjeux de mesure et de comparabilité des données découlant de différences méthodologiques entre les organismes statistiques du Canada et des États-Unis, ainsi que des différences dans les variables explicatives potentielles de l’investissement en TI, telles que le capital humain, la fiscalité, les profits, les taux de création d’entreprises, la structure industrielle et la réglementation, entre autres. Ce rapport constate que l’investissement en logiciels dans les industries de l’information et de la culture ainsi que dans les services professionnels, scientifiques et techniques explique 45,9 % de l’écart total d’investissement en TI par travailleur entre le Canada et les États-Unis. [Download full PDF report](https://csls.ca/pdf/csls2016-01-1.pdf)