--- canonical_url: "https://csls.ca/research/weak-ict-investment-in-canada-and-the-united-states-the-role-of-cloud-computing/" title: "Weak ICT Investment in Canada and the United States: The Role of Cloud Computing" author: name: "stapp" url: "https://csls.ca/author/stapp/" date_published: "2026-07-02T11:34:18+00:00" date_modified: "2026-07-09T22:10:24+00:00" post_type: "research" summary: "" post_tag: - "Canada" - "cloud computing" - "digital economy" - "ICT investment" - "input-output tables" - "own-account investment" - "technology 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" --- # Weak ICT Investment in Canada and the United States: The Role of Cloud Computing Canonical URL: https://csls.ca/research/weak-ict-investment-in-canada-and-the-united-states-the-role-of-cloud-computing/ # Weak ICT Investment in Canada and the United States: The Role of Cloud Computing [Download full PDF report](https://csls.ca/pdf/csls2018-04-1.pdf) Cite this report × Cite this report as: Kim, Myeongwan. 2018. “Weak ICT Investment in Canada and the United States: the Role of Cloud Computing.” CSLS Research Report 2018-04. Ottawa: Centre for the Study of Living Standards. https://csls.ca/research/weak-ict-investment-in-canada-and-the-united-states-the-role-of-cloud-computing/ ## Author: - Myeongwan Kim Centre for the Study of Living Standards (CSLS) ## Report 2018-04 August 2018 60 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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In an increasingly digitalized economy, weak ICT investment seems puzzling. To explain this trend, this report focuses on two facets of the changing ICT spending pattern driven by the rise in cloud computing starting in the mid-2000s. Instead of investing in ICT capital goods, organizations now purchase cloud services from cloud service providers that appear to be more efficient in producing computing services. Second, cloud service providers undertake substantial own-account investment in ICT equipment which is not counted in official statistics. Based on input-output tables, we find that the impact of cloud computing on the ICT spending pattern is potentially substantial: during the 2006-2014 period, the purchase of cloud services rose at an annual rate of 25.3 per cent to reach $2,554 million CAD in Canada and at an annual rate of 20.4 per cent to reach $32.1 billion USD in the United States. During this period, adding ownaccount ICT equipment investment by the IT service sector results in additional 1.71 percentage-points in annual growth for nominal ICT investment in Canada and additional 1.12 percentage-points in the United States. Après une croissance vigoureuse de l’investissement en TIC au Canada et aux États-Unis durant les années 1980 et 1990, la croissance de cet investissement a commencé à ralentir après 2000, et sa part dans le PIB a amorcé une tendance à la baisse. Dans une économie de plus en plus numérisée, la faiblesse de l’investissement en TIC peut sembler paradoxale. Pour expliquer cette tendance, ce rapport se penche sur deux facettes de l’évolution des dépenses en TIC découlant de l’essor de l’infonuagique amorcé au milieu des années 2000. Au lieu d’investir dans des biens d’équipement en TIC, les organisations achètent désormais des services infonuagiques auprès de fournisseurs qui semblent plus efficaces dans la production de services informatiques. De plus, les fournisseurs de services infonuagiques réalisent d’importants investissements pour compte propre en équipement TIC, qui ne sont pas comptabilisés dans les statistiques officielles. À partir des tableaux des entrées-sorties, nous constatons que l’incidence de l’infonuagique sur les dépenses en TIC pourrait être considérable : durant la période 2006-2014, les achats de services infonuagiques ont augmenté à un taux annuel de 25,3 % pour atteindre 2 554 millions de dollars canadiens au Canada, et à un taux annuel de 20,4 % pour atteindre 32,1 milliards de dollars américains aux États-Unis. Durant cette période, l’ajout de l’investissement pour compte propre en équipement TIC par le secteur des services de TI se traduit par une croissance annuelle additionnelle de 1,71 point de pourcentage de l’investissement nominal en TIC au Canada, et de 1,12 point de pourcentage aux États-Unis. [Download full PDF report](https://csls.ca/pdf/csls2018-04-1.pdf)