“Productivity gap growing with U.S.”
In a recent article by Barrie McKenna of “theglobandmail.com” he address the ever increasing issue of the productivity gap that is growing between the U.S. and Canada. The article outlines through a recent study that was conducted by the “Institute for Research on Public Policy” that Canada is lagging in research and development sectors when compared to other wealthy and developing nations of the world. Canada’s economy has been growing much faster then many other developed other countries recently, however, there labour production rate is not keeping up implying a lack of sufficient technology and adequate production techniques. The IRPP recommends that Canada do more to stimulate development in these areas by helping to create links between businesses, universities, and the government. They also recommend that Canada shift its resources that are being used in low areas of production to areas of higher production and more economic yield.
After reading this article I decided to do further research on the productivity gap in Canada, and came across a second article titled “Canada could produce more new companies with B.C.-style tax break”. I agree with the authors thoughts in this article which outline that many new productive Canadian companies need to have access to sufficient capital through all stages of their development. If the Canadian government provided tax cuts for companies, or individuals that invest a large sum of capital in emerging high-tech companies it would help bridge Canada’s productive gap with the U.S. These increased funds and capital for Canadian companies could help dramatically increase their productive methods through increased technology, and in turn help further strengthen Canada’s already strong economy. 