December Productivity Roundup

[[Globe and Mail](http://www.theglobeandmail.com/report-on-business/canada-needs-to-stimulate-productivity-by-sharpening-the-appetite-for-risk/article2252783/?utm_medium=Feeds%3A%20RSS%2FAtom&utm_source=Home&utm_content=2252783 “”)] Bill Currie and Elliott Morris of Deloitte make the point that the risk-averse attitudes that sheltered us from the global economic slowdown also hold us back from taking the risks necessary to build more competitive companies and a more productive economy.

[[$7500 for every Canadian](http://www.thestar.com/business/article/1087794–productivity-lag-cost-each-canadian-7-500-in-one-year-study-finds?bn=1 “”)] A new study by the Conference Board of Canada finds that our productivity lag cost every Canadian $7500. That’s how much richer we would have been in 2008 alone — after tax — if Canadian productivity had matched that of the United States over the previous 20 years. The same study finds that corporate profits would have been 40 per cent higher as well.

[[Invisible Hand](http://www.theglobeandmail.com/report-on-business/when-it-comes-to-productivity-the-invisible-hand-lacks-visible-success/article2245357/?utm_medium=Feeds%3A%20RSS%2FAtom&utm_source=Home&utm_content=2245357 “”)] Jim Stanford makes the case that the current model of improving productivity isn’t working. Governments have eliminated distorting taxes and regulations, signed free-trade agreements and cut red tape to little effect. Stanford says that the markets will produce more productive outcomes when they are guided, supported, and constrained, rather than simply being unleashed. He wonders if the best approach is to challenge and direct markets to more productive and innovative outcomes.

[[The Finland Model](http://www.theglobeandmail.com/news/national/time-to-lead/building-innovation-in-canada/finlands-innovative-model-worth-emulating/article2257313/?from=sec431 “”) Finland consistently leads in almost every international indicator for social, economic and environmental innovation, productivity and quality of life, including the lowest level of government corruption. How do they do it? Find out.

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