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Canada gets a "C" grade on its share of knowledge-intensive services in GDP and ranks 11th out of 16 countries. It is important to look also at Canada’s ranking on the complementary indicator—the share of GDP generated by high- and medium-high-technology manufacturing. Switzerland is an “A” performer on both indicators. The U.S., the U.K., and Australia are strong on knowledge-intensive services but relatively weak on high- and medium-high-technology manufacturing, while the opposite is true for Germany. Canada's middle-of-the-pack ranking reflects its lack of specialization in either high-technology services or manufacturing.
Yes. Between 1980 and 2006, Canada experienced a steady increase in the importance of knowledge-intensive services. Knowledge-intensive services now account for 18.1 per cent of GDP, up from 11.2 per cent in 1980. Knowledge-intensive services increased in importance in all peer countries.
Use the pull-down menu to compare the growth in Canada’s share of value added by knowledge-intensive services in GDP with that of its peers.
Canada’s market has become more open to limited competition within the financial and telecom sectors, and from private delivery services in the postal sector. Further economic integration with the U.S. has also enhanced the uptake of new technologies and applications in Canada by simultaneously increasing market size and competition.
Canada’s relative ranking has been a “C” in each decade.
The scope to further expand advanced business services is greater now that most of Canada’s population lives in urban centres. Advanced services focus on value creation and management—such as marketing, organizational, and other design work, as well as coming up with ideas and planning—more than transaction facilitation.
More emphasis on R&D and labour force skills is essential if Canada is to catch up to the leaders.
Business Enterprise R&D Spending
Top-Cited Papers Index
Government Online Services Index
The share of knowledge-intensive services (post and telecommunications, finance and insurance, and business activities) in gross domestic product (GDP).
The data on this page are current as of April 2013.