Canada Assesses Its Progress in Information and Science-Based Industries

IEDC recently reported on a new study by Stats Canada on the country's progress in information and science-based industries.

According to the study, information and communications technology (ICT) industries have dynamic output, employment and productivity characteristics, but they are not the only source of growth in Canada's high-tech economy. The study, the first in a new analytical series that examines industrial transitions in the Canadian economy, focuses on companies in ICT and science-based industries, innovative sectors associated with the growth of the New Economy.

Here are just two of the many findings from the study:

* The rapid growth of the technology sector is a central characteristic of the New Economy. From 1987 to 1997, real GDP in the ICT sector almost doubled (+96%). This was more than three times the rate of growth of 28% for industries outside the ICT and science areas.

* Companies in the ICT sector employed 44% more workers in 1997 than in 1981, while employment outside the ICT and science industries rose by only 24%. At the same time, long-run multifactor productivity gains in the ICT sector averaged 1.7% a year, about four times the rate of growth of 0.4% for industries outside the ICT and science areas.

We need more of this type of research on a national level to understand the overall effects of local and state tech-based ED initiatives. It's important to know what it all adds up to.

Website link.