CanCompete: Published Research Reports
(November 2011)
The Conference Board of Canada, recognizing Canada’s lagging productivity performance over the past 20-plus years, created the Centre on Productivity to add to the body of knowledge on this important issue. This briefing, Canada’s Lagging Productivity: What If We Had Matched the U.S. Performance? was prepared by the Centre. The briefing addresses the reason that productivity growth matters so much by asking: “What if Canada had matched the U.S. productivity performance over the past two decades?” To answer this question, the Centre on Productivity conducted a model simulation that shows how much richer Canadians would be, how much more profitable corporations would be, and how much more revenue governments would have at their disposal, if Canada’s labour productivity growth had kept pace with that of the United States over 1988–2008. The results are startling. (August 2011)
Canada faces huge and long-standing competitiveness challenges that threaten our long-term economic success. Vision Possible: CanCompete Final Report summarizes the findings of The Conference Board of Canada’s multi-year CanCompete research initiative which was set up, in 2007, to find ways to address the challenges that had been identified in an earlier report. This report sets out 22 key recommendations from the Canada Project and links them to recommendations for action identified in a review of 25 CanCompete studies. The recommendations for action highlight strategies for measures that can be undertaken by business and government to make an appreciable difference to the capacity of our firms and our country to compete in the global arena. Together, they comprise a clear vision of the attainable for governments and firms: a Vision Possible. (June 2011)
Digital (online) markets seem poised to help Canadian small and medium-sized enterprises (SMEs) sell internationally. However, many Canadian entrepreneurs are reluctant to sell in digital markets because they do not know how to attract foreign customers online. This report identifies three factors that have enabled some Canadian SMEs to internationalize effectively via digital markets: a favourable online reputation, strong online technological capabilities, and an engaged online brand community. The report is based on a survey of over 500 papers published in 33 academic journals, supplemented by interviews with select Canadian entrepreneurs who are successfully selling online in foreign markets. The research indicates there are challenges, as well as opportunities, associated with internationalizing via digital markets; the report discusses several of these challenges and ways to overcome them. Finally, the authors identify eight policy-related implications of their research. (June 2011) - Lack of coordination between governments in Canada has hindered both the effectiveness of efforts to reduce GHG emissions and their efficiency (the cost per unit of reductions).
- Although provincial climate change action plans generally align well with the need to reduce emissions in particular sectors, it is difficult to measure the progress achieved.
- The national target of a 17 per cent reduction in emissions by 2020 and the individual provincial targets are being addressed through a complex, diverse, and opaque mix of instruments and programs.
- Carbon pricing is one area where a coordinated approach may produce more efficient results.
(May 2011)
It is ironic that in what is recognized as a knowledge economy, the core or our success—knowledge—is being lost in ever-larger quantities because we do not know how to preserve it. Organizations are beginning to recognize the value of knowledge management practices and are investing in processes to identify, capture, organize, store, transfer, and reuse organizational knowledge to maintain operations and achieve organizational success. However, few have had much success in transferring tacit knowledge—the invaluable knowledge built on individuals’ experiences, skills, and judgement. This report explores the compelling reasons for organizations to focus on tacit knowledge (TK) transfer and presents effective practices and processes that can be used to implement a TK transfer initiative to preserve organizational memory and IQ. (March 2011)
Due, in part, to a prolonged period of underinvestment, Canada is faced with an “infrastructure gap.” Recent infrastructure funding increases have started to address this issue. However, increased public funding alone cannot address the entire gap. The reason for this is that competition for public funding has stretched the public purse to such an extent that the whole gap cannot be eliminated. As a result, other methods of reducing the infrastructure gap—such as through enhancing the productivity of infrastructure services and managing demand through pricing mechanisms—are required. This report examines the productivity and pricing practices of four infrastructure services in Canada: rail freight, urban transit, natural gas distribution, and water and wastewater services. The report also examines changes that have helped increase the efficiency of certain infrastructure services. And, it explores how the changes could apply to those services faced with declining productivity and large infrastructure gaps. (October 2010)
Are immigrants making Canada more innovative? Immigrants are by definition seekers of a better way—the very embodiment of innovation. The purpose of this research report is to test this presumption. Specifically, it examines different dimensions of innovation across areas such as research, the culture sector, business, and global commerce, as well as at the level of the individual immigrant, the firm, and the national and international economy. At every level of analysis, immigrants are shown to have an impact on innovation performance that is benefiting Canada. This report takes a comprehensive approach to understanding and quantifying the relationship between immigration and innovation. The report is designed to help government and business recognize the potential value of immigration to innovation performance. (February 2010 )
As a part of the CanCompete project, this report contributes to the overall mandate of examining issues that affect Canada’s prosperity by exploring the complex relationship between innovation and regulation. It asks the question: Are governments within Canada investing resources in the support of further innovation, while at the same time putting the brakes on innovation through regulation? Using two sectoral case studies, literature reviews, and primary and secondary research, the research question is explored in more depth. The findings of the report point to the reality that the supporting and constraining forces are both being put into motion by Canadian governments and that both are necessary. The true challenge is in finding and establishing the necessary balance between the two—a balance where regulation works to maintain health and safety while innovation is still encouraged and the process of innovation is not derailed by inappropriate regulation. (February 2010)
The global recession has had a devastating impact on Canada’s international trade. As economies rebound and demand resumes, trade will pick up again. But does this mean Canada can look forward to a healthy trade outlook? This report suggests not. Canada’ trade profile going into the recession was discouraging. Well before the recession struck, value chains and other aspects of the ascending international business model were revolutionizing global production and the way the world does business. A tough business at the best of times, trade is likely to get a lot tougher still as firms compete for recovering markets and capital flows. As this report explains, the challenge is not simply how to survive the recession—it is how Canada can emerge from the recession better positioned for success in the global economy than it is now. (January 2010)
Productivity growth is a key determinant of our economic well- being and depends critically on investment in human and physical capital. Canada’s Lagging Productivity: The Case of a Well-Educated Workforce Lacking the Much-Needed Physical Capital focuses on human capital, how it has interacted with physical capital in Canada, and how this interaction has affected Canada’s productivity growth record. International empirical evidence confirms economic theory, which suggests that as the quality of the labour force improves, the economy should become more capital intensive. But since the early 1980s, both productivity growth and capital intensity in Canada have slowed relative to the 1960s and 1970s, despite a steady improvement in the country’s labour force quality. The paper concludes that the quality of the labour force has not been a constraint on capital investment in Canada. Therefore, we must look elsewhere to explain the growth slowdown in capital investment and productivity. (November 2009)
This report discusses the value of using better rate structures, demand management, conservation, investments, and other methods so that water use is more efficient. Water and wastewater infrastructure planning is based on the essential services that water provides. Access to potable water, wastewater gathering, and wastewater treatment are key contributors to healthy citizens and communities. A reliable supply of water that meets appropriate quality standards is considered essential in Canadian society. The primary focus of this report is on investment in municipal water infrastructure. The investment funds come from a variety of sources. Given the long-term and capital-intensive nature of water infrastructure, observers stress the importance of long-term stability in revenue sources and financings. There is broad evidence of a water infrastructure deficit in Canada, suggesting that an imbalance currently exists. As a starting point, the report describes the broad revenue sources and financing methods available to municipal water providers. (November 2009)
While almost all Canadians drink milk and eat cheese, few understand the long-standing and complex system that sets dairy prices and limits milk supply. Making Milk examines the system’s origins, how it works in practical terms, and its effects on both dairy farmers and Canadians. Understanding how this policy originally came into practice helps explain its longevity. And understanding how the system works in practice points to the pressures it faces today. These include astronomical quota costs, unanticipated dairy imports, and globally uncompetitive pricing. The report finds that milk “policy” prices provide a very high and stable return to dairy producers. But the system compromises their ability to address challenges and seize opportunities. Moreover, the substantial protection the system affords comes at the expense of the processors and consumers who buy milk and dairy products, and jeopardizes other key Canadian public interests. (November 2009)
This report examines the generational difference and similarities that exist in the workplace. The report’s findings are based on a review of literature on generations in the workplace combined with a survey (the Conference Board’s 2009 National Survey on Generations in the Workplace) of more than 900 Canadian workers—including “Boomers” (aged 45–64), “Gen Xers” (aged 30–44), and “Gen Yers” (aged 18–29). The literature review provides the context for the study, while the survey supplies empirical evidence about the differences and similarities in the perceptions and preferences of the three generations. Based on the findings, the report also offers employers insights and advice on ways to build an inclusive workplace culture; how to recruit, engage, and retain workers from across the generations; and how to learn from effective generational policies, programs, and practices used in other organizations. (October 2009)
Businesses that attract, integrate, develop, and retain international talent benefit from an expanded knowledge and skills base. However, many immigrants face challenges when trying to enter the Canadian labour market (e.g., credential recognition, language issues) or integrating into Canadian workplaces (e.g., different workplace cultures, discrimination). This report looks at the ways businesses can mitigate these challenges by adapting and implementing a number of “immigrant-friendly” programs and practices along a recruitment, integration, development, and retention continuum. An analysis of award-winning business programs and practices and a series of key informant interviews yield practical insights that businesses can use to more effectively leverage the skills, knowledge, and creative capacity of international talent. Finally, the report identifies some “keys to success” for making immigration work in Canadian businesses. (December 2008)
Does urbanization and urban concentration play a role in Canada’s productivity performance? The purpose of this report is to determine whether urbanization, in and of itself, plays a role in Canada’s productivity performance. Is a higher urban share of total population enough to lift productivity growth? If so, where does Canada stand (based on the literature) compared with other developed nations when it comes to urbanization? To address this issue, we created a basic econometric model. The results suggest that among developed countries, the change in the capital-to-labour ratio, the level of education, and the geographic size of the country are the most important factors determining productivity growth. That is not to say that these two factors have no effect at all on productivity—but it is clear that in the developed world, neither urbanization nor urban concentration can be considered leading factors in determining productivity growth. (October 2008)
Public–private partnerships (PPPs) are increasingly being used to procure transportation infrastructure assets. But what are the factors that make for successful PPPs? A review of three case studies offers insights. The Confederation Bridge PPP shows that project risks can be successfully transferred to the private sector, and underscores the importance of having the procurement authority adapt its role to the requirements of a PPP. The London Underground PPPs demonstrate the use of innovative output-based performance measures, but they also show that significant uncertainty about major costs (such as upgrades to legacy assets) can impair the effectiveness of risk transfer to the private sector. As well, these PPPs suggest that governments should be cautious about imposing PPP delivery methods on lower levels of government. Finally, the Montréal metro project, which was not a PPP, provides insights on the importance of thorough project planning and the value of extensive due diligence. (October 2008)
The burden of regulation can be a key constraint to economic performance. Governments at all levels in Canada are keenly aware of this burden and face constant pressure to reduce regulatory requirements. This analysis looks at regulatory requirements for major resource projects and recent initiatives to reduce the time required to review projects. The goal is to contribute to regulatory efficiency without sacrificing effectiveness. The key focus of this study is the evolving regulatory treatment of major resource projects—primarily at the federal level—while also considering issues of shared jurisdiction with provincial or aboriginal governments. (October 2008)
With falling fertility rates and the aging of the “baby boom” generation, the supply of skilled and productive workers is in decline across Canada and around the developed world. Immigration is one strategy for alleviating this shortage, but the competition for international talent is intensifying. Those countries that best adjust their immigration programs to meet the needs of employers, immigrants, and communities will fare the best. (August 2008)
Canadian firms face two principal and interrelated challenges to their ability to compete globally: lagging productivity performance compared with many of the developed nations, and a strong currency that has been pushed up by higher energy prices. (August 2008)
The tax treatment of Canadian international business—and, specifically, interest payments on monies used by firms for foreign investments and acquisitions—is an important business issue that deserves public attention. (April 2008)
Foreign Investment Review Regimes: How Canada Stacks Up compares Canada's foreign investor screening policies and practices with those of its peers. According to the Organisation for Economic Co-operation and Development (OECD), Canada has among the world's most restrictive regulatory barriers to foreign investment. But these calculations take into account overt, explicit foreign investment screening requirements, while ignoring opaque barriers such as political interference and state-owned enterprises. (April 2008)
In this briefing, The Conference Board of Canada argues in favour of a harmonized tax system. The current situation of having tax regimes operating at cross purposes across the country undermines incentives, acts as a drag on productivity, and adds costs to businesses. (February 2008)
Recent foreign purchases of large Canadian companies have raised concerns that Canada is being “hollowed out.” However, an examination of recent mergers and acquisitions in Canada belies this image. Over the past 15 years, Canadian companies have been more active in acquiring foreign companies than have foreigners purchasing Canadian entities, even in the large-deal category of over $1 billion. (February 2008)
Tax measures, coupled with market forces, will be key to the fight against climate change and the ability of Canadian firms to adjust. Green taxes and green investment tax credits are needed if Canadian firms are to accelerate their technological adaptation to a carbon-priced world. Part of the Canadian Tax Reform for Sustainable Prosperity series, this briefing looks at how taxes and markets can be used to combat global warming. (January 2008)
Canada’s cities are facing a fiscal imbalance that threatens their ability to provide services, programs, and infrastructure. This briefing looks at the problem and proposes solutions. In January 2007, The Conference Board of Canada released the final report of The Canada Project, Mission Possible: Sustainable Prosperity for Canada. The current report provides updates on the progress of the broad directions that public policy took during 2007, giving readers a sense of the extent to which the commitments, interests, and agendas of governments, policy-makers, and leaders at all levels are taking Canada in a positive direction as measured against the yardstick of sustainable prosperity.
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