1、ASSESSING CANADIANINNOVATION,PRODUCTIVITY,AND COMPETITIVENESSBy Robert D.Atkinson and Lawrence ZhangAPRIL 2024innovationpolicy.ca innovationpolicy.ca Assessing Canadian Innovation,Productivity,and Competitiveness ROBERT D.ATKINSON AND LAWRENCE ZHANG|APRIL 2024 Canada faces unprecedented challenges i

2、n innovation,productivity,and competitiveness.The first step in addressing them is to develop a clear understanding of the Canadian economys underlying structure and performance in each area.Policymakers must then tailor strategies for specific industries and technologies instead of focusing on prin

3、cipally on macro factors.KEY TAKEAWAYS Canada lags peer competitors on key innovation indicators,particularly in the areas of research and development,intellectual property,and innovation outcomes.Canadas productivity performance has been dismal.For comparison,American labour productivity growth was

4、 160 percent faster than Canadas from 2002 to 2020and Americas growth in that period was actually low in historical terms.From industry to industry,Canadian labour productivity growth is quite divergent,with some sectors growing substantially and others actually declining.Canadas competitive positio

5、n in advanced industries is weak,as its global market shares have fallen dramatically over the last 25 years.It now has 42 percent less advanced-industry output as a share of its economy than the global average.Canadas crisis cannot be adequately understood or addressed by looking only at broad macr

6、o factors such as tax rates,infrastructure,and education.Policymakers must develop economic strategies focusing on firm,sector,and technology levels.ITIF CENTRE FOR CANADIAN INNOVATION&COMPETITIVENESS|APRIL 2024 PAGE 2 CONTENTS Key Takeaways.1 Introduction.3 Distinguishing Innovation,Productivity,an