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Opportunity in the turmoil

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Roger L. MartinApril 15, 2009

Presentation to Conference on Canada’s Prosperity

Opportunity in the turmoilReport on Canada 2009

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• Seizing opportunity in the turmoil

• Canada’s prosperity gap

• AIMS and the long-term opportunities for Canada

• A long-term Prosperity Agenda to guide us through the turmoil

Opportunity in the turmoil

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The 2020 Prosperity Agenda Creates Opportunity To Realize Canada’s Prosperity Potential

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Recent Economic Trends Are Worrisome

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Opportunity in the turmoil

• Seizing opportunity in the turmoil

• Canada’s prosperity gap

• AIMS and the long-term opportunities for Canada

• A long-term Prosperity Agenda to guide us through the turmoil

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Canada Is More Prosperous Than Most International Peers

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Canada Trails The United States In GDP Per Capita

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Closing The Prosperity Gap Affords Higher Living Standards For Canadians

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The Current Recession Has Similar Effects In Canada And The United States

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We Measure Four Components Of Prosperity

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Productivity And Intensity Are The Main Sources Of Canada’s Prosperity Gap

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The Share Of Creativity-Oriented Jobs Is Increasing

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New Jobs In The Coming Decade Will Be In Creativity-Oriented And Routine-Oriented Service Occupations

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Clustered Industries Draw More On Creativity-Oriented Occupations

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Creativity-Oriented Clusters Generate Higher Earnings

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Productivity And Intensity Are The Main Sources Of Canada’s Prosperity Gap

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Prosperity Gap Has Grown With Rising Productivity And Intensity Gaps

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Canada’s Productivity Trails That In International Peers

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Opportunity in the turmoil

• Seizing opportunity in the turmoil

• Canada’s prosperity gap

• AIMS and the long-term opportunities for Canada

• A long-term Prosperity Agenda to guide us through the turmoil

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AIMS Drives Prosperity; Prosperity Drives AIMS

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Canada Leads The United States On Tolerance But Lags On Talent And Technology

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Canadian Businesses Under Invest In Productivity Enhancing Technology

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Public Investment In Education Trails Health Spending

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Public Investment In Education In Canada Trails US Significantly

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Canada’s Marginal Effective Tax Rate On Business Investment Is Among The Highest

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No Other Country's Tax System Penalizes Services Like Canada's

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Pressure And Support Drive All Three Elements Of The Innovation System

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Workers Draw On Three Sets Of Skills

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Earnings Rise With Increases In Occupations’ Analytical Skills

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And With Social Intelligence Skills

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Earnings Decrease With Increases In Physical Skills

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Canada Under Values Increases In Analytical And Social Intelligence Skills

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Canada Had 15 Billion-Dollar Global Leaders In 1985

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Canada Created 24 New Billion$ Global Leaders, 1985-2003

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Canada Created 5 New Billion$ Global Leaders, 2003-2008

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Canada Has 42 Billion-Dollar Global Leaders Currently

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Few Companies Acquired Since 2002 Were Innovative Global Leaders

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Opportunity in the turmoil

• Seizing opportunity in the turmoil

• Canada’s prosperity gap

• AIMS and the long-term opportunities for Canada

• A long-term Prosperity Agenda to guide us through the turmoil

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Opportunity in the turmoil

Attitudes

We urge the Prime Minster, Premiers,and business, labour, and communityleaders to turn up the volume on theimportance of prosperity andproductivity even in these times ofeconomic uncertainty

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Investment

We encourage more investment to upgrade technology, enhance educational opportunities,and support groups at risk of falling into poverty

Step up investments in information and communication technology

Raise our investment in people

Opportunity in the turmoil

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Motivations

Canada should pursue innovations in tax policy to gain advantage for Canadians

Reduce overall taxes on new business investment, especially in the service sector

Consider a carbon tax

Pursue bold new approaches to taxation

Opportunity in the turmoil

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Structures

Enhance our market structures to build skills and management capabilities, encourage competition, and stimulate innovation and at home and abroad

Continue to draw on creativity-oriented and international skills for our prosperity

Continue to expand innovation policy to buildstrong management capabilities

Pursue the reduction of barriers to investment and trade

Opportunity in the turmoil

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The 2020 Prosperity Agenda Creates Opportunity To Realize Canada’s Prosperity Potential

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Roger L. MartinApril 15, 2009

Presentation to Conference on Canada’s Prosperity

Opportunity in the turmoilReport on Canada 2009