Goar: Jim Flaherty the latest to leap into 'innovation gap'

[CHIMO]

Five Canadian finance ministers have tried to crack the productivity puzzle. All failed. Now Jim Flaherty is taking a stab at it.

Here is the conundrum: We don't use our brainpower to create new wealth. We have a highly educated population, generous tax incentives for research and development and lower corporate tax rates than any leading economic power. Yet our businesses remain reluctant to invest in new products and technologies (with a few honourable exceptions such as Research in Motion, Bombardier and Magna). They don't even capitalize on the exciting discoveries made in our universities and government laboratories.

This is a formula for minimal economic growth. We have an aging population and a fading manufacturing sector. We can no longer count on cheap energy or a ready American market for our exports.

Flaherty clearly gets it. He devoted a large portion of last week's federal budget to measures to encourage innovation, support young entrepreneurs and create the economy of tomorrow.
http://www.thestar.com/opinion/article/777472--goar-jim-flaherty-the-latest-to-leap-into-innovation-gap

[HeresyLives]

1. Our businesses are incredibly lazy.

Easier to just sell standard stuff to the Americans...and spend the weekend at the cottage.

[daleo]

2. A lot of our businesses are branch plants

The R&D, Engineering, etc is usually done at home office. That's where the value added is, and that's why we lag in "productivity".

[HeresyLives]

3. Book for ya...get it at the library.

http://www.amazon.ca/Why-Mexicans-Dont-Drink-Molson/dp/1553654064/ref=pd_sim_b_2

All you need to read is the first 2 chapters.

I guarantee you'll be seething.