Productivity Issues in Canada

Productivity growth is the fundamental driver of improvements in real incomes and living standards over the long term. Productivity gains increase the economic pie, freeing additional resources that can be invested to meet the needs of the population in areas such as health care, education, the environment, public infrastructures and social security.After the first oil price shock in 1973, productivity growth declined sharply in Canada, as in all other OECD countries. Then, in the 1990s, Canada's productivity growth lagged significantly behind that of its largest trading partner, the United States. These worrisome trends generated a great deal of research interest and a lively public debate in Canada.This collection of research papers on productivity will help better understand the reasons for Canada's relatively weak productivity record and the nature of productivity growth in Canada. They cover a wide range of topics - productivity trends and determinants; innovation and productivity; investment and productivity; global linkages and productivity; productivity in the new economy; and the social aspects of productivity. Some papers have already been published by Industry Canada, several figuring prominently in the productivity debate, but many are published here for the first time.