How does Canada perform relative to its peers?
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.
Has Canada increased its share of GDP attributed to knowledge-intensive services?
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.
What accounts for Canada’s increase over the past three decades?
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.