--- canonical_url: "https://csls.ca/research/what-explains-the-canada-us-ict-investment-intensity-gap/" title: "What Explains the Canada-US ICT Investment Intensity Gap?" author: name: "CSLS" url: "https://csls.ca/author/cslc/" date_published: "2026-07-02T13:48:07+00:00" date_modified: "2026-07-02T13:48:07+00:00" post_type: "research" summary: "" post_tag: - "business sector" - "Canada-US gap" - "capital intensity" - "ICT investment" - "information technology" - "OECD" - "productivity" 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" --- # What Explains the Canada-US ICT Investment Intensity Gap? Canonical URL: https://csls.ca/research/what-explains-the-canada-us-ict-investment-intensity-gap/ # What Explains the Canada-US ICT Investment Intensity Gap? [Download full PDF report](https://csls.ca/pdf/csls2005-06-1.pdf) Cite this report × Cite this report as: Centre for the Study of Living Standards. 2005. “What Explains the Canada-US ICT Investment Intensity Gap?” CSLS Research Report 2005-06. Ottawa. https://csls.ca/research/what-explains-the-canada-us-ict-investment-intensity-gap/ ## Author: - Centre for the Study of Living Standards (CSLS) Centre for the Study of Living Standards (CSLS) ## Report 2005-06 December 2005 129 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/) [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/) [A Survey of Indicators of Economic and Social Well-being Andrew Sharpe July 1999 | Report 1999-cprn | 72 pages](https://csls.ca/research/a-survey-of-indicators-of-economic-and-social-well-being/) [The Canada-U.S. Income Gap Centre for the Study of Living Standards (CSLS) June 2000 | Report 2000-01 | 6 pages](https://csls.ca/research/the-canada-u-s-income-gap/) [Raising Canadian Living Standards: A Framework for Discussion Centre for the Study of Living Standards (CSLS) October 2002 | Report 2002-td | 56 pages](https://csls.ca/research/raising-canadian-living-standards-a-framework-for-discussion/) [Productivity Trends in Natural Resources Industries in Canada Centre for the Study of Living Standards (CSLS) February 2003 | Report 2003-01a | 69 pages](https://csls.ca/research/productivity-trends-in-natural-resources-industries-in-canada/) [Productivity in the Forest Products Sector: A Review of the Literature Centre for the Study of Living Standards (CSLS) February 2003 | Report 2003-02 | 28 pages](https://csls.ca/research/productivity-in-the-forest-products-sector-a-review-of-the-literature/) [An Analysis of Productivity Trends in the Forest Products Sector in Canada Centre for the Study of Living Standards (CSLS) February 2003 | Report 2003-01b | 64 pages](https://csls.ca/research/an-analysis-of-productivity-trends-in-the-forest-products-sector-in-canada/) [Why Are Americans More Productive Than Canadians? Andrew Sharpe June 2003 | Report 2003-03 | 83 pages](https://csls.ca/research/why-are-americans-more-productive-than-canadians/) [Human Well-being and Economic Well-being: What Values Are Implicit in Current Indices? Lars Osberg, Andrew Sharpe August 2003 | Report 2003-04 | 60 pages](https://csls.ca/research/human-well-being-and-economic-well-being-what-values-are-implicit-in-current-indices/) ## Abstract ## Résumé EN FR Copy link Email LinkedIn This report investigates the reasons behind the Canada-US gap in ICT investment intensity. It finds that Canada’s ICT investment per worker in the business sector stood at 45.1 per cent of the US level in 2004, down from 60.4 per cent in 1987, and that Canada’s lower ICT share of GDP reflects a lower share of ICT in total business investment (18.5% vs 30.5% in the US). The report examines a range of explanations for the gap including statistical and methodological differences, industrial structure, firm size, relative costs and prices, managerial attitudes, ICT training, taxes, and competitive intensity. Ce rapport examine les raisons sous-jacentes à l’écart Canada-États-Unis dans l’intensité de l’investissement en TIC. Il constate que l’investissement en TIC par travailleur du secteur des entreprises au Canada s’établissait à 45,1 % du niveau américain en 2004, en baisse par rapport à 60,4 % en 1987, et que la part plus faible des TIC dans le PIB du Canada reflète une part plus faible des TIC dans l’investissement total des entreprises (18,5 % contre 30,5 % aux États-Unis). Le rapport examine plusieurs explications possibles de cet écart, notamment les différences statistiques et méthodologiques, la structure industrielle, la taille des entreprises, les coûts et prix relatifs, les attitudes des gestionnaires, la formation en TIC, la fiscalité et l’intensité concurrentielle. [Download full PDF report](https://csls.ca/pdf/csls2005-06-1.pdf)