The document is a report on Canada's innovation imperative from 2011. It finds that while Canada is one of the most prosperous nations, there remains a significant prosperity gap with the United States due to lagging productivity. To close this gap and drive future prosperity, the report recommends that Canada invest more in education, business R&D, and technology. It also suggests tax policy innovations, improving venture capital structures, and balancing public innovation strategies with international trade.
2. The Institute Mandate
To measure and monitor
Ontario’s and Canada’s
competitiveness, productivity,
and economic progress
compared to other provinces,
p p ,
US states and the US as a whole
and to report to the public on a
regular basis
1 June 2011
3. Canada’s Innovation Imperative
Productivity and innovation
AIMS for i
f innovation
ti
The innovation imperative:
Steps to Canada’s prosperity
2 June 2011
24. Canada’s Innovation Imperative
Productivity and innovation
AIMS for i
f innovation
ti
The innovation imperative:
Steps to Canada’s prosperity
23 June 2011
26. Canadian And US Attitudes Are Similar
Ontarians differ little from their US peers in…
Views of business and business leaders
Attitudes toward risk and success
Attitudes toward competition and
competitiveness
Willingness to take action to achieve a
higher standard of living
25 June 2011
42. Taxes Can Be Low And High Or Wise And Unwise
41 June 2011
43. Our Tax On Business Investment Is Now Much Lower
42 June 2011
44. Canada Should Explore Tax Policy Innovations
Consider a Carbon Tax
Tax corporations on cash flow, not accruals
Eliminate the corporate tax
Reduce high Marginal Effective Tax Rates for
low income earners
Tax i di id l
T individuals on consumption, not income
i i
43 June 2011
60. Base FDI Policy On Reciprocity, Not Net Benefit
59 June 2011
61. Canada’s Innovation Imperative
Productivity and innovation
AIMS for i
f innovation
ti
The innovation imperative:
Steps to Canada’s prosperity
60 June 2011
62. The Innovation Imperative: Steps To Canada’s Prosperity
Attitudes
Encourage innovation for Canada to win in
an ever more competitive world
Remain determined to close the prosperity gap
R i d t i dt l th it
through aggressive attitudes toward making
innovation happen
61 June 2011
63. The Innovation Imperative: Steps To Canada’s Prosperity
Investments
Invest in the human capital and technology
critical for innovation
Continue investing in people for Canada’s
C ti i ti i l f C d ’
competitiveness
Increase business investment in research and
development and in information and
d l t di i f ti d
communications technology
Review provincial policies and programs on
incentives to attract businesses to Canada
62 June 2011
64. The Innovation Imperative: Steps To Canada’s Prosperity
Motivations
Ensure tax changes remain in place and
make Canada a tax innovator
Maintain th
M i t i the recent changes in Ontario’s and
t h i O t i ’ d
British Columbia’s sales and corporate tax
structures and encourage governments in
Saskatchewan, Manitoba, and Prince Edward
, ,
Island to follow their lead
Lower marginal effective tax rates for low income
Canadians
Consider a carbon tax
Pursue tax policy innovations
p y
63 June 2011
65. The Innovation Imperative: Steps To Canada’s Prosperity
Structures
Drive innovation through smarter public
policies and more international trade
Balance our public innovation strategies
Continue to encourage federal efforts to expand
international free trade agreements
Step up our efforts to increase trade with China,
our next largest trading partner after the United
States and the European Union
Replace the net benefit test for foreign direct
investment with bilateral reciprocity treaties
Explore policy options to improve venture capital
structures
Keep the friendly pressure on our US neighbours to
resist protectionist impulses
64 June 2011