Shoring up the competitive posture of Canadian manufacturers

Figure 3 shows that exports’ share of GDP, 10 which had hovered in the 25 to 30-percent range throughout the 1980s, rose dramatically to a peak of 5 45 percent in 2000 before falling back somewhat in the wake of the 2001 US recession and, more recently, 0 1981 1985 1990 1995 2000 2005 2010 the appreciation of the Canadian dollar. [...] The authors conclude that the similarity in the In a similar vein, Callen, Morel and Fader (2005) trends in the two countries suggests that the causes argue that process is more important than plant size are similarities in the technological environment in determining efficiency and average cost perform- rather than country-specific factors. [...] Sharpe also suggests that Canadian over the past ten years, with 9.9 percent cumulative managers might be more reluctant than their US growth for the former and 17.4 percent for the latter; the counterparts to undertake the organizational changes gap is even larger for the economy as a whole: 2.4 per- and training needed to implement ICT effectively, cent in Canada versus 12.9 percent in the Unite [...] High tax rates on capital take In a detailed IRPP study of the issue, Niosi (2008) away much of the positive incentive for R&D that the concludes that the relevance of academic research to tax credit gives, which reinforces the importance of business is limited, for several reasons. [...] The propor- constraints immigrants face, including the inadequate tion declines sharply with age, to 11.5 percent for the ability of Canadian employers to assess educational 25-to-44 age group, although this is still the third- credentials and work experience acquired in the highest percentage in this age group in 17 countries immigrant’s home country and the lack of bridge the authors examine.