--- canonical_url: "https://csls.ca/research/the-relationship-between-ict-investment-and-productivity-in-the-canadian-economy-a-review-of-the-evidence/" title: "The Relationship between ICT Investment and Productivity in the Canadian Economy: A Review of the Evidence" author: name: "CSLS" url: "https://csls.ca/author/cslc/" date_published: "2026-07-02T13:47:56+00:00" date_modified: "2026-07-02T13:47:56+00:00" post_type: "research" summary: "" post_tag: - "Canada" - "capital stock" - "ICT investment" - "information and communication technology" - "NAICS industries" - "OECD" - "productivity" - "United States" country_focus: - "Canada" 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" --- # The Relationship between ICT Investment and Productivity in the Canadian Economy: A Review of the Evidence Canonical URL: https://csls.ca/research/the-relationship-between-ict-investment-and-productivity-in-the-canadian-economy-a-review-of-the-evidence/ # The Relationship between ICT Investment and Productivity in the Canadian Economy: A Review of the Evidence [Download full PDF report](https://csls.ca/pdf/csls2006-05-1.pdf) Cite this report × Cite this report as: Sharpe, Andrew. 2006. “The Relationship between ICT Investment and Productivity in the Canadian Economy: A Review of the Evidence.” CSLS Research Report 2006-05. Ottawa: Centre for the Study of Living Standards. https://csls.ca/research/the-relationship-between-ict-investment-and-productivity-in-the-canadian-economy-a-review-of-the-evidence/ ## Author: - Andrew Sharpe Centre for the Study of Living Standards (CSLS) ## Report 2006-05 December 2006 108 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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The first part provides a detailed overview of ICT investment and capital by ICT component (computers, communications equipment, and software), and ICT investment and capital stock per worker by ICT component in Canada for the total economy and for 20 NAICS industries, focusing on trends over the 1980-2005 period. The second part contains a general discussion of ICT and productivity issues, with particular emphasis on the relationship between investment in ICT and productivity. The third part provides a review of the literature on the relationship between ICT and productivity, again with a particular emphasis on Canadian studies. The key conclusion of the report is that ICT has been the driving force behind the acceleration of productivity growth in Canada and the United States since 1996. However, the potential of ICT has not been fully exploited and we will continue to see significant ICT contributions to productivity growth in coming years. The role for government is to develop appropriate policy frameworks so that the productivityenhancing effects of ICT can be fully realized. L’objectif de ce rapport est d’éclairer la relation entre les technologies de l’information et des communications (TIC) et la productivité dans l’économie canadienne. La première partie présente un aperçu détaillé de l’investissement et du capital en TIC par composante (ordinateurs, équipement de communication et logiciels), ainsi que de l’investissement et du stock de capital en TIC par travailleur par composante au Canada, pour l’ensemble de l’économie et pour 20 industries du SCIAN, en mettant l’accent sur les tendances de la période 1980-2005. La deuxième partie propose une discussion générale des enjeux liés aux TIC et à la productivité, en mettant particulièrement l’accent sur la relation entre l’investissement en TIC et la productivité. La troisième partie présente une recension de la littérature sur la relation entre les TIC et la productivité, en mettant de nouveau l’accent sur les études canadiennes. La principale conclusion du rapport est que les TIC ont été le principal moteur de l’accélération de la croissance de la productivité au Canada et aux États-Unis depuis 1996. Cependant, le potentiel des TIC n’a pas été pleinement exploité, et l’on continuera d’observer des contributions importantes des TIC à la croissance de la productivité au cours des prochaines années. Le rôle du gouvernement consiste à élaborer des cadres politiques appropriés afin que les effets bénéfiques des TIC sur la productivité puissent être pleinement réalisés. [Download full PDF report](https://csls.ca/pdf/csls2006-05-1.pdf)