More Related Content Similar to The Future of Productivity: Clear Choices for a Competitive Canada (20) More from Halifax Partnership (20) The Future of Productivity: Clear Choices for a Competitive Canada1. The future of productivity
The innovator’s time is now
May 22nd, 2013
3. © Deloitte LLP and affiliated entities.
Productivity is the most significant threat to Canada’s
standard of living
Employment rate
% of total population
that is employed
Hours
Worker
Output
Hour
GDP
Population
X Work effort X Productivity = Standard of living
Sources: Centre for the Study of Living Standards, OECD
2010
$59.28
$46.21
2010
$59.28
$46.21
$13/hr
4. © Deloitte LLP and affiliated entities.
Canada’s economic composition by size and sector is
not a key driver of slow productivity growth
Source: Statistics Canada, Industry Canada, U.S. Bureau of Labor Statistics, Deloitte Analysis
Size doesn’t matter Contribution to Canada–U.S. productivity gap 2009
U.S.
Canada
$59.28
$46.21
Impact of productivity within each
firm size (98% of productivity gap)
$12.81
Impact of firm size distribution
(2% of productivity gap)
$0.26
5. © Deloitte LLP and affiliated entities.
Canada’s economic composition by size and sector is
not a key driver of slow productivity growth
Source: Statistics Canada, Industry Canada, U.S. Bureau of Labor Statistics, Deloitte Analysis
Canada–U.S. productivity growth gap 1987-2008
U.S.
Canada
1.88%
1.04%
Sector composition
doesn’t matter either
Size doesn’t matter
In-sector productivity 88.3%
Sector composition 5.4%
Residual 6.3%
6. © Deloitte LLP and affiliated entities.
Growth is the deceptively simple solution to productivity
– but Canadian firms find growth hard to sustain
Growth in services firms, 2005-2007
Young firms (<5 years old)
Percentage of high growth firms by country
0.15%
$0.41%
0.54%0.54% 0.57%
0.64%
0.41%
Note: High growth firms are defined as firms with 20%+ annualized employment growth over a 3 year period. Scope of firms is limited to
those with 10-250 employees with $30K-$50M revenues in the first year of the period. Similar trend is observed in manufacturing firms.
U.S.Norway
(2006)
SwedenIsrael
(2008)
Canada Netherlands Spain
7. © Deloitte LLP and affiliated entities.
4.5%
4.9%
5.4%
2.6%
3.7%
4.0%
2.7%
Growth is the deceptively simple solution to productivity
– but Canadian firms find growth hard to sustain
Growth in services firms, 2005-2007
Mature firms (>5 years old)
Percentage of high growth firms by country
U.S.Norway
(2006)
SwedenIsrael
(2008)
Canada Netherlands Spain
Note: High growth firms are defined as firms with 20%+ annualized employment growth over a 3 year period. Scope of firms is limited to
those with 10-250 employees with $30K-$50M revenues in the first year of the period. Similar trend is observed in manufacturing firms.
8. © Deloitte LLP and affiliated entities.
Canadian businesses lose momentum for multiple reasons
Low risk
tolerance
Low
competitive
intensity
Poor trade
activity
Weak
investment
9. © Deloitte LLP and affiliated entities.
Canadian businesses lose momentum for multiple reasons
A national strategy for global
competitiveness is imperative to
solve Canada’s productivity challenge
10. © Deloitte LLP and affiliated entities.
“The future of productivity: clear choices for a competitive Canada”
report presents specific, detailed recommendations to reset
Canada’s productivity trajectory
Businesses Government
Academia
CurriculumCommercialize
Trade
Immigration
Growth
FDI
Decision-making
Reinvention
Clusters
Investment
Talent
Trade
11. © Deloitte LLP and affiliated entities.
lululemon
Innovation with customers – Living design thinking
12. © Deloitte LLP and affiliated entities.
Canada Goose
Extreme Canadian manufacturing
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Venmar
Breathing easy through innovation
14. © Deloitte LLP and affiliated entities.
Recon
Bringing information to people when they need it
15. © Deloitte LLP and affiliated entities.
Recon
Continuing to deliver innovation
16. © Deloitte LLP and affiliated entities.
Ocean Nutrition Canada
Homegrown innovation – Healthier world
17. © Deloitte LLP and affiliated entities.
BlueLight Analytics
Taking university IP to the market
18. © Deloitte LLP and affiliated entities.
The time to act on innovation is now
Connect with
Canadian
incubators and
accelerators
19. © Deloitte LLP and affiliated entities.
The time to act on innovation is now
Support
entrepreneurship
and innovation
in Canada’s
educational
system
20. © Deloitte LLP and affiliated entities.
The time to act on innovation is now
Take a fresh
approach to
product and service
development
explore
“Design
Thinking”
21. © Deloitte LLP and affiliated entities.
The time to act on innovation is now
Build out
your
innovation
ecosystem
22. © Deloitte LLP and affiliated entities.
The time to act on innovation is now
Actively
manage your
innovation
program
23. © Deloitte LLP and affiliated entities.
Terry Stuart
Chief Innovation Officer
Deloitte Canada
testuart@deloitte.ca
24. © Deloitte LLP and affiliated entities.
Let’s discuss
What challenges/barriers does
your organization face when
developing an innovation culture?
What are actions you, as a
business leader, can take to
promote an innovation culture in
your organization and in our
community?
What are our future opportunities
for developing an innovation
culture in our community –
collaboration, working with
universities, etc.?
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