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ICT investment gap between Canada and the U.S. grows to 40%

Canada, which has a long history of under investing in productivity-enhancing information and communications technology tools and services, particularly in comparison with the United States, showed no improvement in its performance in 2009. In...


November 24, 2010  


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Canada, which has a long history of under investing in productivity-enhancing information and communications technology tools and services, particularly in comparison with the United States, showed no improvement in its performance in 2009. In fact, the investment gap has grown from 37.2% to 40.5%. According to a new study by the Centre for the Study of Living Standards (CSLS), Canada’s rate of ICT investment per worker in 2009 was 59.5% of that of the U.S. In 2008, it was 62.8%.

The CSLS has conducted research that directly links Canada’s under adoption of technology to the relatively poor productivity of our economy in comparison with competitor nations such as the United States.

In its April 2009 report on innovation, the Council of Canadian Academies noted that “investment in advanced machinery and equipment is a principal source of productivity growth, both through its direct labor-augmenting effect and through its induced impact on innovation, including innovations in the business reorganization required to fully exploit the new machinery and equipment.”

Improving Canadian business productivity is a central priority for the Informational Technology Association of Canada (ITAC), which commissions CSLS’ annual studies of the ICT investment gap. “Our member companies have all seen the transformational impact of ICT tools and services at the enterprise level,” said Bernard Courtois, president and CEO of ITAC.

Study findings are available at www.itac.ca.