Vigorous market competition is a critical driver of firm-level innovation, which is the major contributor to enhancing productivity growth.
Core sectors of the Canadian economy remain protected from the full forces of global – sometimes even inter-provincial – competition.
This undermines their incentive to invest in new technologies, innovative management practices and other productivity-enhancing strategies. It also makes them less able to compete on the world stage.
The competition dimension of innovation and productivity performance is often overlooked in discussions of federal policy, which focus on R&D credits, innovation policy and funding, corporate tax cuts and such like. This panel squarely addressed the issue of competition, focusing on who gains and who stands to lose from changes to the status quo, and how policy in this difficult area is best implemented.