What's this about?
Ontario suffers from a productivity problem. In an era of rising electricity prices and intensifying global competition, productivity gains are more important than ever. Yet Ontario businesses continue to underinvest in the determinants of their productivity. According to the Jobs and Prosperity Council, private sector labour productivity growth averaged only 0.5 percent annually since 2001.
Our aim is to foster the conditions that spur innovation and increase productivity in Ontario. The private sector knows that there is work to do: only 8 percent of Ontario businesses believe their sectors are productivity leaders.
We believe that both government and the private sector have a key role to play increasing productivity. As such, we believe the following steps must be taken to make Ontario a productivity leader:
- Businesses need to increase their R&D spending relative to their peers. According to Deloitte, a full 36 percent of Canadian businesses do not know they are under-investing.
- Sector-based organizations need to benchmark relative investments in R&D and other productivity measures.
- To encourage business investments in productivity-enhancing processes and technologies, government must ease the cost of doing business in Ontario. Ontario requires a new approach to regulation, and regulatory burden reduction is required.
- The Government of Ontario should leverage public sector procurement to spur innovation.
- The Government of Ontario should take actions to improve public sector productivity and provide better services at the same or lower cost.