A key culprit for Canada’s lagging productivity growth is weak innovation in the business sector. Using the level of business R&D as a main indicator, I explore policy options for Canada to close its innovation gap with other countries. I first review previous research on the determinants of business R&D and highlight reasons for Canada’s lacklustre performance. I then examine the innovation system in three business R&D intensive countries (Israel, Finland, and Sweden) to gain insights on critical success factors that drive business R&D. Based on these case studies and my literature review, I draw implications for Canada through comparative analysis and propose four main policy options to increase business sector R&D. Using a set of criteria, I evaluate these options along with the status quo. The strongest option is to remove foreign investment restrictions in R&D intensive sectors.
Copyright is held by the author.
The author has not granted permission for the file to be printed nor for the text to be copied and pasted. If you would like a printable copy of this thesis, please contact firstname.lastname@example.org.
Member of collection