VANCOUVER – BUSINESS – Economic growth and business investment in Canada have weakened, severely weakening the country’s ability to encourage innovation or new business start-ups, according to a new study released by the Fraser Institute, a Canadian think tank independent and non-partisan on public policies.
“Canada’s weak economic growth in the years leading up to the pandemic reflects a lack of innovation and low productivity growth,” said Philip Cross, senior researcher at the Fraser Institute and author of Canada’s faltering commercial dynamism and lagging innovation.
The study finds that Canada’s economic growth (measured by GDP, adjusted for inflation) over the past decade has been the slowest since the 1930s, with stalled productivity and reduced competitiveness undermined the country’s attractiveness for investment.
The study also found that businesses in Canada are hampered by authoritarian regulations and that much of the Canadian economy is based on limiting competition, instead of fostering competitive markets, which in turn limits productivity growth and innovation.
In fact, while innovation originating in Canada declined from 1990, innovation in many other countries skyrocketed during the same period, such as the United States with cumulative gains of over 6 percent per decade and the UK was not far behind at 4 percent. hundred.
“No matter how you measure economic success, Canada has been underperforming for many years, which has negative consequences for all Canadians who are denied the many benefits of a vibrant and healthy economy,” Cross said.
âGovernments should reconsider policies that contribute to this economic malaise with the aim of creating an environment more conducive to entrepreneurship, investment and innovation.