OECD Economic Survey of Canada Release
June 12, 2008
2:30-5:00 pm
Toronto, Ontario
Please join us for the Toronto release of the OECD Economic Survey of Canada
The C.D. Howe Institute and the Institute for Competitiveness & Prosperity are pleased to present the Toronto release of theOECD Economic Survey of Canada
June 12, 2008
2:30-5:00 pm
Toronto, Ontario
Location: Joseph L. Rotman School of Management, University of Toronto, 105 St. George Street
Join us for a presentation of the 2008 report by its authors
Alexandra Bibbee, Head of Canada Desk, OECD and
Peter Jarrett, Head of Country Studies, OECD.
They will be joined by a panel of observers of the Canadian economy with opportunities for audience involvement.
Panelists:
Andrew Heintzman, President and a Co-founder of Investeco Capital
Andrea Mandel-Campbell, Author and Journalist
James Milway, Executive Director of the Institute for Competitiveness & Prosperity
William B.P. Robson, President and Chief Executive Officer of C.D. Howe Institute
Institute releases Report on Canada 2008, Setting our sights on Canada’s 2020 Prosperity Agenda
April 1, 2008
Despite some concerns about an economic slowdown, Canadians have excellent opportunities to redouble their efforts at tackling a long-term Prosperity Agenda to reach our economic potential by 2020.
Canada has one of the most prosperous and competitive economies in the world. But we are not living up to our full economic potential that would increase well being for ourselves and future generations. The Institute for Competitiveness & Prosperity, in its fifth Report on Canada, Setting our sights on Canada’s 2020 Prosperity Agenda, released today, proposes the 2020 Prosperity Agenda as a way of contributing to the national discussion on realizing our prosperity potential.
Read more about the Report | Download the paper | Event presentations
Conference on
Canada’s Prosperity Challenge
Toronto, Four Seasons Hotel
Tuesday, April 1, 2008
8:30 am – 1:30 pm
Participate in the release of Report on Canada 2008, by the Institute for Competitiveness & Prosperity with Roger L. Martin, Chairman of the Institute and Dean, Joseph L. Rotman School of Management
Engage with leading thinkers on Canada’s economic performance
Hear the experiences of Canadian global leader Peerless Clothing and global mining group, Xstrata
Lunch speaker: Thras Moraitis, Executive General Manager Group Strategy and Corporate Affairs, Xstrata (London, UK)
Task Force on Competitiveness, Productivity and Economic Progress releases Sixth Annual Report
Ontarians need to overcome complacency and act now to achieve future prosperity potential
November 16, 2007
As Ontario’s Government begins its new mandate, it has a great opportunity to redouble its efforts at tackling a Prosperity Agenda to reach Ontario’s economic potential by 2020. Ontario is one of the most prosperous and competitive jurisdictions in the world, especially among those outside North America. But we’re not living up to our full potential, and Ontarians need to shift their attitude from a collective complacency to a shared determination to achieve this potential. The Task Force on Competitiveness, Productivity and Economic Progress in its Sixth Annual Report, Path to the 2020 Prosperity Agenda, released today at the Canadian Business Outlook 2008 Conference, proposes the 2020 Prosperity Agenda as a way of invigorating the debate.
Read more about the Report | Download the Report | Event Presentation
Canada Global Competitiveness Standing Up in One Index, Down in Another
World Economic Forum rankings indicate need for Canadian governments and businesses to pull out of current competitiveness lethargy, says Institute for Competitiveness and Prosperity
October 31, 2007
In the “Global Competitiveness Report 2007-2008” released today by the World Economic Forum, whose Canadian partner is the Institute for Competitiveness & Prosperity, results for Canada in the rankings over 2006’s results were mixed. On the “Business Competitiveness Index,” Canada moved up to 14th from 15th. On the “Global Competitiveness Index,” Canada fell to 13th from 12th.
Institute releases Working Paper 10, Prosperity, inequality, and poverty
September 10, 2007
While Ontario has one of the most prosperous economies in the world, inequality of income distribution in the province has been rising. A more important consideration, however, is the persistence of poverty among high risk groups.
To help these people, we need greater investments in their skills and capabilities. These can be funded more easily if Ontario achieves its prosperity potential. Then, in a virtuous circle, with more of these Ontarians participating in its economic development, our prosperity will grow even further.
These are some of the key conclusions of Working Paper 10, Prosperity, inequality, and poverty released today by the Institute for Competitiveness & Prosperity.
Read more about the paper | Download the paper | Event presentations
Institute releases report, Assessing Toronto’s financial services cluster
June 22, 2007
Toronto’s financial services industries are critical drivers of prosperity in the city, in Ontario, and in Canada. But their success cannot be taken for granted as the industry undergoes ever increasing globalization. Government policy makers and industry participants need to step up their efforts to ensure we are building a world beating financial services cluster in Toronto. That is the key conclusion from a study released today by the Institute for Competitiveness & Prosperity on behalf of the Toronto Financial Services Alliance and the Ontario Ministry of Economic Development and Trade.
Read more about the report | Download the report | Download the presentation
Institute releases report, Strengthening management for prosperity
May 23, 2007
An important part of closing Canada’s prosperity gap and realizing its full economic potential is a greater commitment to strengthening management talent. That is a key conclusion of a new report prepared by Roger Martin, Dean of the Joseph L. Rotman School of Management and Chairman of the Institute for Competitiveness & Prosperity and James Milway, the Institute’s Executive Director. The report discusses the importance of management talents in a well functioning innovation system and reviews shortfalls in developing these capabilities. The report calls for greater recognition of the importance of management talent in public policy to improve Canada’s innovation, productivity, and prosperity.
Download the Report
Institute Releases Report on Adoption of Information & Communication Technology by Small & Medium Enterprises
May 2, 2007
Report prepared for the Information and Communications Technology Council. The report reviews the research evidence on the impact of information and communication technology (ICT) on productivity growth in advanced economies and assesses factors leading to the lower rate of adoption by small and medium enterprises (SMEs) in Canada. Given the imprtance of SMEs to Canada’s economy, this limits our overall productivity and prosperity performance. The report reviews the reasons for this lower adoption rate through our framework of the innovation system which includes supply of innovation, demand for innovation, and financing of innovation.
Institute releases Report on Canada 2007, Agenda for Canada’s prosperity
March 8, 2007
Canadians need to step up to the challenge of achieving our prosperity potential for the benefit of current and future generations. With the likelihood of a federal and several provincial elections over the next 18 months, Canadians will have the opportunity to discuss and debate the importance of our prosperity gap and ways to narrow it. The Institute for Competitiveness & Prosperity in its Report on Canada 2007, Agenda for Canada’s prosperity, released today at the Conference on Canada’s Prosperity Challenge, proposes a prosperity agenda as a way of invigorating the debate.
Canada’s economy is one of the world’s most successful; and most signs – low unemployment rates, solidly performing stock market, and a strong Canadian dollar – reinforce this. But it is not meeting its full potential. More worrisome, two decades ago, Gross Domestic Product (GDP) per capita in Canada was only $3,300 below – or 10 percent behind that in the United States. Over the past two decades, we have drifted further behind US performance – and Canada now trails the United States by $9,200 or 18 percent. GDP measures the value created by workers and firms in Canada from the human, physical, and natural resources in the country.
Institute announces conference on Canada’s Prosperity Challenge
Join us in Toronto (Thursday, March 8) for a conference on Canada’s prosperity challenge
Featuring the release of Report on Canada 2007, Agenda for Canada’s prosperity
Click here for Canada’s Prosperity Challenge Conference Presentations
Task Force on Competitiveness, Productivity and Economic Progress releases Fifth Annual Report
Task Force on Competitiveness, Productivity and Economic Progress proposes aggressive agenda for increasing Ontario’s prosperity in its Fifth Annual Report
November 22, 2006
Ontarians need to shift their attitude from a collective complacency to a shared determination to close the prosperity gap the province has with other leading North American jurisdictions. With a provincial and a likely federal election in 2007, Ontarians will have the opportunity to discuss and debate the importance of the prosperity gap and ways to narrow it. The Task Force on Competitiveness, Productivity and Economic Progress in its Fifth Annual Report, Agenda for our prosperity, released today at the Canadian Business Outlook 2007 conference, proposes a prosperity agenda as a way of invigorating the debate.
Institute releases tax burden paper
Ontario’s Fiscal Competitiveness: Still Some Way to Go
November 21, 2006
In an update of research conducted for the Institute in 2004, Jack Mintz and Duanjie Chen conclude that, “Compared to our last analysis in 2004, Ontario’s fiscal competitiveness has improved in that effective fiscal burdens have approached levels found in the five US states [previously analyzed]” However their work indicates that Ontario “still has more work to do to create a distinct advantage as a premier location for business activities.”
This report includes significant changes to the data arising from various updates, especially by the federal Department of Finance. The effect of this new data is to increase calculated effective tax rates on capital, particularly in the US.
View the latest report (Nov. 2006) by Chen and Mintz
View the 2004 Report
View the 2003 report here, including a detailed review of the methodology used by the authors
Task Force on Competitiveness, Productivity and Economic Progress to release its Fifth Annual Report
November 1, 2006
We are pleased to announce that Roger L. Martin, Chairman of the Task Force on Competitiveness, Productivity and Economic Progress will be releasing its Fifth Annual Report on November 22, 2006. The release will be part of the 2007 Business Outlook Conference between 8:00 am and 1:00 pm at the:
Fleck Atrium at the Rotman School of Management, University of Toronto
105 St. George Street
Toronto, Ontario, M5S 3E6
Canada’s Global Competitiveness Declines in 2006
World Economic Forum rankings indicate need for Canadian governments and businesses to drive harder for innovative strategies, says Institute for Competitiveness and Prosperity
September 26, 2006
In the “Global Competitiveness Report 2006-2007” released today by the World Economic Forum, whose Canadian partner is the Institute for Competitiveness & Prosperity, Canada moved down in the rankings over 2005’s results in both of its competitiveness indices. On the “Business Competitiveness Index,” Canada moved down to 15th from 14th. On the “Global Competitiveness Index,” Canada also fell – to 16th from 13th.
Institute Releases Working Paper 9
Ontarians work three and a half fewer weeks annually than US peers at a cost of $3,700 per capita in prosperity
As North Americans celebrate Labour Day and the last long weekend of the summer, the Institute for Competitiveness & Prosperity releases new findings on cross-border differences in work effort
September 1, 2006
Ontario workers are on the job about three and half fewer weeks annually than their counterparts in US peer states and this is costing $3,700 per capita in lower prosperity. Much of the gap in hours worked – the intensity gap – is the result of preferences for more vacations in Ontario. However, a significant percentage of the gap is because many Ontarians are working part-time but would prefer to work full-time. The intensity gap is also wider among more highly educated and higher income Ontarians. These are some of the key conclusions of Working Paper 9, Time on the job: Intensity and Ontario’s prosperity gap released today by the Institute for Competitiveness & Prosperity.
Institute to release ninth working paper on hours worked differences, Ontario’s intensity gap
August 15, 2006
The Institute for Competitiveness & Prosperity will release its working paper on Ontario’s intensity gap on September 1, 2006. The intensity gap – the difference in hours worked by workers in Ontario and its North American peer jurisdictions is the second most important factor after productivity in explaining Ontario’s prosperity gap.
Roger Martin, Chairman of the Institute for Competitiveness & Prosperity and Dean of the Joseph L. Rotman School of Management, will present the results of our research a week later on Friday, September 8. The event will take place in the Fleck Atrium at the Rotman School (105 St George St, Toronto) Click here for map. The presentation begins at 8:30 am with a discussion to follow.
We are pleased to announce the participation of the following at the release:
* Arthur Donner, a leading economist who has led federal and Ontario task forces analyzing the issues of working time
* Andrew Heisz, Statistics Canada, who has analyzed hours worked and other labour economics issues
* Eleana Rodriguez, a Principal of Mercer Human Resource Consulting, a global leader for HR and related financial advice, products, and services
The event will be complete by 10:30 am. Coffee and light breakfast will be available at 8:00 am.
Institute releases Report on Canada 2006, Rebalancing priorities for Canada’s prosperity
March 10, 2006
Canadians need to rebalance our economic priorities and policies by investing more today to achieve our full economic potential and prosperity in the future. Canada has a widening prosperity gap with the United States. The key to closing this prosperity gap, the Institute argues, is higher productivity – the increased capability of Canadians to add more value to the physical, human, and capital resources in the nation. But to achieve this, Canadians need to shift from the “consume today” path we’re on. We need to rebalance our priorities to “invest for tomorrow“, the path to increasing future prosperity.
The Institute shows that Canada’s prosperity ranks second in the world among countries with a third of Canada’s population or more. However, compared to the United States, we are less successful in creating an innovative and prosperous economy. In 2004, the gap in Gross Domestic Product (GDP) per capita – the recognized measure of a country’s economic performance – was $8,700. This means that our GDP per capita was 18 percent lower than that in the United States. “Closing this prosperity gap would have real benefits for Canadian families,” said Martin. “On average, each family would gain $12,100 in disposable, after tax income – every year.” “And closing this gap is not an unrealistic aspiration. As recently as 1981 our prosperity gap was less than half the current gap,” added Martin.
Conference on Canada’s Competitiveness & Prosperity
Friday, March 10, 2006 from 8:30 am to 3:00 pm
At the Chateau Laurier Hotel, Ottawa
Institute releases Thomson Macdonald research on attracting US venture capital to Ontario
January 24, 2006
US venture firms are significant investors in Ontario’s venture capital industry and there are opportunities to expand this participation, according to a recent study conducted by Thomson Macdonald, the leading information source on the venture capital and private equity markets in Canada. Since 1999, cumulative investment has amounted to $5 billion in over 300 companies – accounting for more than a quarter of venture capital disbursements in Ontario in any given year. A survey among some of the leading US firms investing in Canada indicates that by addressing some technical tax interpretation issues, Canada could attract even more VC investment. US investors also identified a relative lack of experienced technology entrepreneurs as a key challenge they faced in investing in Ontario.
Download the Thomson Macdonald Paper | Download an Institute summary presentation on the paper
Task Force releases Fourth Annual Report, Rebalancing priorities for prosperity
November 24, 2005
Ontarians need to rebalance our economic priorities and policies by investing more today if we want to achieve our full economic potential and prosperity in the future. That is the conclusion of Rebalancing priorities for prosperity, the Fourth Annual Report of the Task Force on Competitiveness, Productivity and Economic Progress in its Fourth Annual Report, released today at the MaRS Centre in Toronto.
Institute Releases Working Paper 8, Fixing Fiscal Federalism
Institute Urges Overhaul of Fiscal Federalism to Strengthen Prosperity in Canada and Ontario
October 17, 2005
The current fiscal federalism system is not working for Canadians or Ontarians
Canada’s fiscal federalism is a missed opportunity for improving the potential for long-term prosperity in the have-not provinces. That is the conclusion of Working Paper 8, Fixing fiscal federalism, released today by Ontario’s Institute for Competitiveness & Prosperity at the Economic Club of Toronto. The Working Paper concludes that greater success in closing regional disparities would mean higher prosperity across Canada and more and better opportunities for Ontario to invest in its own productivity and prosperity.
Canada’s Global Competitiveness Improves Modestly in 2005
To continue improvement, Canada must strengthen market structures while business leaders must drive harder for innovative strategies, says Institute for Competitiveness and Prosperity
September 28, 2005
In the “Global Competitiveness Report 2005-2006” released today by the World Economic Forum, whose Canadian partner is the Institute for Competitiveness & Prosperity, Canada moved up in the rankings over 2004’s results in both of its competitiveness indices. On the “Business Competitiveness Index,” Canada moved up two to 13th from 15th in 2005. On the “Growth Competitiveness Index,” Canada also improved - from 15th to 14th.
Why Investment Matters to Ontarians
May 9, 2005
A Half-Day Conference
Exploring the Benefits of Investment to All Stakeholders
Friday June 24 from 8:30 to 1:00 pm
At the Atrium at the Joseph L. Rotman School at the University of Toronto (105 St George St).
Institute releases C4SE paper on tax reforms
Competitiveness and Prosperity in Ontario: Options for the 21st Century
March 29, 2005
In research conducted for the Institute, the Centre for Spatial Economics modeled a series of provincial tax reforms for Ontario. In general, the reforms modeled were designed to promote business investment in Ontario. Provincial tax reforms modeled include: lowering corporate income taxes, eliminating the corporate capital tax, increasing depreciation allowances for new capital investment, harmonizing the provincial sales tax with the federal goods and services tax, and reducing the personal income tax. Reforms to the provincial sales tax are found to yield the most positive economic outcomes.
Institute releases Working Paper 7, Taxing smarter for prosperity
March 29, 2005
Ontario can and should tax smarter in order to close the prosperity gap with its peer group of US states. For businesses, this means shifting taxation away from productivity-enhancing investments. For individuals, it means removing high marginal tax burdens on families with low incomes. This is the key conclusion of the seventh working paper, released today by Ontario’s Institute for Competitiveness & Prosperity.
“Smart taxation” creates the right balance between equity, when taxes are paid by those most able to afford them, and efficiency, when the negative impact of taxation on decisions to work, save, and invest is limited. The working paper proposes several options for governments, including closer integration of the tax and benefit system, new ways to encourage investment for retirement – as seniors also face high marginal effective tax burdens – and greater focus on taxation of consumption, instead of earnings or savings.
Martin expressed his hope that, “the working paper helps Ontarians and Canadians think through ways of achieving a smarter tax system. Taxation is a complex issue; we’re proposing some ideas that are worth exploring further because of their potential to contribute to higher prosperity for all.”
Institute releases research conducted by Finn Poschmann
C.D. Howe Institute Background Issues: Marginal and average effective tax rates in Ontario
In research conducted for the Institute, Finn Poschmann of the C.D. Howe Institute finds that for many Ontario families “provincial and federal taxes and benefits and their clawbacks and reductions stack on top of one other, generating quite high marginal effective tax rates over the income ranges to which they apply.” These high marginal effective tax rates occur over an extended range of family income (between $30,000 and $50,000), and also bear heavily on low income seniors. Thus, while government benefits provide valuable assistance to low-income families and seniors, a socially costly consequence is that high benefit clawbacks sharply reduce the net gains to Ontarians who seek additional work-hours.
Institute releases Canadian report at World Economic Forum Annual Meeting
in Davos, Switzerland, Realizing Canada’s prosperity potential
Canadians have built one of the world’s most prosperous economies, but we are still not realizing our full prosperity potential. To do this, individuals, businesses, and governments must work together to increase our investments for future prosperity and to strengthen market structures that stimulate innovation and upgrading.
The Institute found that Canada’s prosperity gap with the US widened from $6,000 thousand per capita in 2002 to $7,200 in 2003. This gap translates into an unrealized potential of $15,000 after tax disposable income for the average Canadian family and $90 billion in lost tax revenues for federal and provincial governments. The Institute is concerned that, while Canada has the potential for economic growth, its situation could deteriorate if we do not act now. Martin said, “We need to avoid a vicious downward economic spiral of under investment, reduced productivity, reduced capacity to invest, further reduced productivity, and the resultant restriction in our standard of living. Instead, we can create a virtuous circle by investing more and strengthening structures to increase productivity and prosperity.”
Institute releases tax burden paper
Ontario ‘s Fiscal Competitiveness in 2004
In an update of research conducted for the Institute last year, Jack Mintz and Duanjie Chen conclude that “ Ontario remains sharply fiscally uncompetitive” when compared to the five US states analysed. Their work indicates that today’s effective tax burden on all costs is 29.0 percent, 13.8 percentage points above the median of 15.2 percent in the five states analyzed. This gap in 2004 is unchanged from 2003. Federal tax relief given to Ontario businesses has been offset largely by provincial policies such as higher corporate income tax rates.
View the Chen/Mintz paper and other research
You may be asked to register before downloading. There is no charge.
Task Force Releases Third Annual Report
Realizing our prosperity potential
Ontario has the potential to achieve prosperity that matches results in the most vibrant economies in the world if its governments, businesses and individuals act on a set of ambitious recommendations made by the Ontario Task Force on Competitiveness, Productivity and Economic Progress. The Task Force argues that Ontario can close the prosperity gap and realize its full economic potential. The key to this is higher productivity – the increased capability of Ontarians to add more value to the physical, human, and capital resources in the province. Last year, in its Second Annual Report, the Task Force concluded that more investment is an important element in raising productivity. This year’s report sets out areas where that investment is required. For businesses, it means larger investments in machinery, equipment and software; for governments, it means striking the right balance between spending on current consumption, such as health care and social services and investing for future prosperity, such as infrastructure and education; for individuals, it means investing more in themselves, such as in higher educational achievement.
The Task Force also observes that Ontario ‘s market structures provide inadequate specialized support and competitive pressure to firms and individuals. Ontario ‘s industries are not benefiting from the kind of specialized support – such as university/industry collaboration and specialized research and training – that creates world-class advantage for companies and workers. Nor does Ontario have the structures that fuel the intense competitive pressure that comes from strong firm rivalry and sophisticated and demanding customers. Without this pressure to succeed, Ontario ‘s firms and industries will not strive to be counted among the best in the world.
Mixed results in Canada’s rankings in latest global competitiveness indexes
Canada ‘s rank fell in one competitiveness index and improved its position in another according to the “Global Competitiveness Report 2004-2005” released today by the World Economic Forum. The Forum’s Canadian partner is the Toronto-based Institute for Competitiveness and Prosperity. On the Business Competitiveness Index, Canada fell from 12th last year to 15th in 2004. On the Growth Competitiveness Index, Canada improved slightly from 16th to 15th.
Institute releases research on successful innovative companies.
The Institute for Competitiveness & Prosperity released a research report prepared for it by The Strategic Counsel today on the experiences and perspectives of successful innovative companies. The survey was conducted among founders and senior executives at venture backed firms most of which have achieved sustainability through an initial public offering or have been acquired. The pool of such firms is relatively small – drawing on publicly available information Macdonald & Associates, an advisor to the research project, identified 60 such firms. The Strategic Counsel, a Toronto-based market research firm was able to complete 27 15- to 30-minute interviews with leaders of these firms. Research topics covered include the relative importance of finance and talent to date and going forward and the advantages and disadvantages respondents perceive versus leading competitors, typically US-based.
Access the research report
You may be asked to register before downloading. There is no charge.
Institute releases Working Paper 6
Reinventing innovation and commercialization policy in Ontario
Ontario firms in traded industries trail their US counterparts by 55 percent in patent creation per employee, a key measure of innovative capacity in Ontario . To improve our innovation performance, government policy needs to focus as much on the demand for innovation as on funding of R&D and the hard sciences. That is the key conclusion of Working Paper 6 Reinventing innovation and commercialization in Ontario released today by the Institute for Competitiveness & Prosperity.
In its recent Budget the Ontario Government indicated that the Institute would conduct research into Ontario ‘s commercialization of R&D. As a first step it is proposing a way to think about the issues related to innovation and commercialization. Having reviewed the factors at play in innovation the Institute is proposing that Ontario assess two complementary factors - the support for innovation and the pressure for innovation. The Working Paper refers to funding for R&D and availability of scientists and engineers as examples of support. In the area of pressure it is referring to the forces that compel firms to innovate – sophisticated and demanding customers and capable competitors.
The Working Paper concludes that government policy in Canada has focused too much in the area of support for innovation, and within that has concentrated excessively on hard sciences and technology. To create an effective environment for innovation it is equally important that there be support from effective managers who are driving company operations and strategies. Public policy also needs to drive towards creating greater pressure on businesses. No matter how much government support is given for innovation, businesses only innovate to the extent their customers and competitors pressure them to. The evidence in this and previous Working Papers indicates that this pressure is lacking in Ontario.
Institute releases Ontario’s biopharmaceutical cluster profile
The Institute for Competitiveness & Prosperity released its latest Ontario cluster profile – Toronto ‘s biopharmaceutical cluster. This is the fifth in a series of profiles that are based on the approach developed by Michael Porter’s Institute for Strategy and Competitiveness. The profile follows a standard approach measuring cluster effectiveness along 120 dimensions. As with most of the other profiles carried out by the Institute, Ontario ‘s cluster is compared to a similar cluster in one of the 14 peer states in the US . In this profile we assess the Boston cluster for comparison with Toronto .
Institute releases Working Paper 5
Strengthening structures: Upgrading specialized support and competitive pressure
Ontario workers’ wages are 23% lower than their counterparts’ wages in US peer states in the industries that are the most important to Ontario’s prosperity. That is the key conclusion of Working Paper 5 released today by the Institute for Competitiveness & Prosperity.
For the first time the Institute has been able to measure the effectiveness of Ontario’s clusters of traded industries. Previous research at the Institute showed that Ontario benefits from a good mix of industry clusters. The latest research shows that Ontario’s clusters are not as effective as the same clusters in the peer states.
The Working Paper shows that Ontario’s market structures provide inadequate specialized support and competitive pressure to firms and individuals. Drawing on research conducted by the World Economic Forum and its own research, the Institute concludes that Ontario provides an adequate level of general support – in infrastructure and basic education - to the economy. However, Ontario’s clusters and the overall economy are not benefiting from specialized support, such as university/industry collaboration and specialized research and training – the kind of specialization that creates world-class advantage for companies and workers. Nor does Ontario have the structures that create conditions of intense competitive pressure from firm rivalry and sophisticated customers.
Institute releases new data on Canada’s clusters of traded industries
The Institute for Competitiveness & Prosperity has assembled cluster employment and wage data on the 41 clusters of traded industries in each of Canada’s 25 Census Metropolitan Areas and 10 provinces. This analysis draws on the methodology developed by Professor Michael Porter of the Institute for Strategy and Competitiveness, Harvard Business School.
Institute releases report at World Economic Forum Annual Meeting in Davos, Switzerland
Partnering for investment in Canada’s prosperity
Ontario has a 15 percent prosperity gap against the United States because Canadians invest to achieve a 15 percent shortfall. To close the gap Canadian individuals, businesses, and governments must become partners in investing for tomorrow’s prosperity. This is the key conclusion from the report prepared by the Institute for Competitiveness and Prosperity. The report was released by Roger Martin, Chairman of the Institute and Dean of the Joseph L. Rotman School of Management at the University of Toronto. The Institute identifies under investment in education, machinery and equipment, our cities, and processes for the economic integration of our immigrants as the key challenges in closing the prosperity gap. It also makes recommendations for breaking out of today’s under investment trap to ensure we are investing for tomorrow’s prosperity.
Institute releases tax burden paper
Assessing Ontario’s Fiscal Competitiveness
In research conducted for the Institute, Jack Mintz and Duanjie Chen conclude that “Ontario’s fiscal position relative to similar US jurisdictions is not at all competitive”. Their work indicates that today’s effective tax burden on all costs is 25.4 percent, 10.4 percentage points above the median of 15.0 percent in the five states analyzed. This gap in 2003 is higher than the gap in 2002 primarily as a result of a widening gap on taxes on capital during 2003 but also in taxes in labour. Far from a “race to the bottom” as some observers describe tax reductions in Canada and Ontario we still have meaningfully higher tax burdens than leading US states.
Task Force Releases Second Annual Report
Investing for prosperity
Ontario has a 10 percent prosperity gap against the leading US states because individuals, businesses, and governments invest less than our counterparts in these states. To close the gap Ontario needs to reverse the widening pattern of under investment that limits our potential for productivity gains. This is the key conclusion from the Ontario Task Force on Competitiveness, Productivity and Economic Progress. The government-appointed group of industry and academic leaders, chaired by Roger Martin, Dean of the Rotman School of Management identifies under investment in education, machinery and equipment, our cities, and processes for the economic integration of our immigrants. The Task Force makes recommendations for breaking out of today’s under investment trap to ensure we are investing for tomorrow’s prosperity. In addition, it sets out its research priorities for the coming year that will identify further initiatives to raise prosperity and living standards across the province.
Read more about the paper | Download the paper in PDF (843.84KB)
Canada falls in two global competitiveness rankings
Canada’s rank fell in two competitiveness indices according to the “Global Competitiveness Report 2003-2004” released today by the World Economic Forum. The Forum’s Canadian partner is the Toronto-based Institute for Competitiveness and Prosperity. On the Business Competitiveness Index, Canada fell from 10th last year to 12th in 2003. On the Global Competitiveness Index, Canada fell from 9th to 16th.
Institute Releases Working Paper 4
Striking similarities: Attitudes and Ontario’s prosperity gap
Ontarians’ attitudes towards competition, innovation, risk-taking and business are not roadblocks to closing the prosperity gap. This was the key conclusion of Working Paper 4, released today by the Institute for Competitiveness & Prosperity. The Institute engaged The Strategic Counsel, an Ontario- based market research firm, to survey the business attitudes of the general public, business community and business leaders in Ontario and the peer states. Across many of the factors explored, including aspirations, risk taking and innovation, self-confidence, and attitudes towards competition, the survey responses revealed strikingly similar results. There were some differences, however. Most significantly, the survey indicated that Ontarians’ attitudes towards post-secondary education may be a hindrance to prosperity. The survey also revealed that attitudes towards the economic benefits of immigration are more positive in Ontario. Finally responses indicate that Ontarians attach greater importance to celebrating success - expressing a greater likelihood to take pride in local companies’ success and attaching greater importance to celebrating business success. Following today’s release, the Institute is continuing its research work into the causes and possible remedies for the prosperity gap.
Institute Releases Working Paper 3
Missing opportunities: Ontario’s urban prosperity gap
Ontario’s city dwellers lag $5,779 in prosperity per person behind city dwellers in the peer group of leading US states. In contrast, Ontarians living outside city regions were $937 or 3% ahead of their US counterparts. This was a conclusion of Working Paper 3 released today by the Institute for Competitiveness & Prosperity. The Working Paper demonstrates that Ontario’s cities benefit from some significant advantages in demographic and creativity indices, a steady inflow of well educated immigrants, a first rate primary and secondary school system, and a great mix of industry clusters. But Ontarians are missing opportunities to increase productivity and prosperity through lower aspirations, an inability to take full advantage of immigrants’ human capital, a federal fiscal framework that transfers resources out of urban regions, municipal fiscal and governance frameworks that need improvement, and the urban/rural imbalance of political representation federally and provincially.
Institute Releases Research Conducted by Richard Florida and Meric Gertler
Competing on Creativity: Placing Ontario’s Cities in North American Context
The Institute for Competitiveness and Prosperity is pleased to release the research report, Competing on Creativity: Placing Ontario’s Cities in North American Context. The research was conducted by Professors Richard Florida and Meric Gertler and funded jointly by the Institute and the Ontario Ministry of Enterprise, Opportunity and Innovation. It is based on research methods used previously by Florida to examine the new patterns of economic growth in the U.S. The authors conclude that Ontario cities, with their social diversity and artistic creativity, have the kind of “creative capital” needed for economic growth and competitiveness in today’s world.
Read more about the paper | Download the paper in PDF (1.58MB)
Task Force Releases First Annual Report
Closing the prosperity gap.
Ontario is at a crossroads in its economic development. The province can be satisfied with being a solid player, or it can aspire to be one of the handful of outstanding economic regions in the world setting. This challenge was issued today by the Ontario Task Force on Competitiveness, Productivity and Economic Progress, a group of industry and academic leaders appointed by the Premier and chaired by Roger Martin, Dean of the Rotman School of Management. In its First Annual Report, the Task Force urged Ontarians to seek a place among the leading regions and presented four recommendations to begin the process of achieving this goal.
Institute Releases Second Working Paper
Measuring Ontario’s Prosperity: Developing an Economic Indicator System.
Ontario’s GDP per person is almost 14 per cent lower than the median of 16 comparable North American jurisdictions. This performance gap equates to nearly $6,000 for every person in Ontario. This was the conclusion of the second Working Paper released today by the Institute for Competitiveness & Prosperity. The Working Paper demonstrates that while Ontario’s economy performs extremely well globally, it trails many of the U.S. states in its peer group.
Read more about the paper | Download the paper in PDF (829.34KB)
Institute Releases First Working Paper
A View of Ontario: Ontario’s Clusters of Innovation.
The Institute for Competitiveness and Prosperity is an indepedent not-for-profit organization that deepens public understanding of macro and microeconomic factors behind Ontario’s economic progress. We are funded by the Government of Ontario and are mandated to share our research findings directly with the public.
The Institute’s primary purpose is to serve as the research arm of the Task Force on Competitiveness, Productivity and Economic Progress, which was announced in Ontario’s April 2001 Speech from the Throne. The Institute’s first priority will be to develop ways to measure and monitor Ontario’s economic progress.
This entails comparing Ontario’s performance with other provinces, U.S. states and other jurisdictions by creating an indicator system. Such systems have been created in many other jurisdictions and provide the foundation for a policy.
The Institute is also committed to a public consultation process in:
- determining the best ways to develop measurements of Ontario’s productivity, competitiveness and economic progress
- educating and building awareness of these measures for Ontario
- encouraging regional processes for discussing these measures and their implications
Visit the site frequently to stay informed about our public consultation events. Or if your group would be interested in a presentation by the Institute.