Canada has been thinking for some time about productivity and why Canada's productivity figures are not at the level we would like them to be in OECD rankings. This has led to some fairly serious consideration about matters to do with innovation.
Productivity is a result of investment in new ways of doing things. This may be technology or it may be management processes or it may be capital. In Canada we have a fairly concentrated economy, and we also lag in a number of ways in terms of regulations. The competitive forces at play are relatively low and our regulatory framework is not as robust as it is in some other countries. A rising price on carbon is an example of that. Absent robust, competitive forces to stimulate innovation, and absent, where there are market failures, regulation to stimulate the take-up of innovation, we will not have all the benefits of the investments we're making in innovation.
I would also say that other countries, Israel included, have very good economic information on the role that relatively small firms play in their global competitiveness through exports and other things. I would suggest that we may want to consider reporting on R and D, and exports as well, by size of firm so that we have the macroeconomic information to improve the formation of capital markets and our decision-making in the private and public sector.