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VANCOUVER, British Columbia, Sept. 24, 2024 (GLOBE NEWSWIRE) — Enterprise funding in high-tech and revolutionary asset classes which are essential to boost residing requirements has been considerably weaker in Canada than within the U.S. for the previous 20 years, and the hole has grown bigger since 2014, finds a brand new research printed as we speak by the Fraser Institute, an impartial, non-partisan Canadian public coverage think-tank.
“Not all enterprise funding is created equal, and investments in equipment, gear, and analysis and improvement, which enhance employee productiveness are main contributors to larger residing requirements,” mentioned Steven Globerman, Fraser Institute senior fellow and creator of The Weak spot of Company Funding in Canada, 2001-2021: Identification and Evaluation.
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“Worryingly, Canada has been trailing U.S. investing in these essential property for the previous decade or extra.”
The research finds that Canada lags considerably behind the U.S. when it comes to the share of all enterprise funding going in direction of the Info and Communications Applied sciences (ICT) and Mental Property Merchandise (IPP) asset classes, the 2 classes that contribute most importantly to elevated productiveness and better residing requirements.
For instance, from 2001 to 2010, solely 26 p.c of whole funding in Canada went to these essential asset classes, in comparison with 44 p.c within the U.S.
And the hole is rising.
From 2014 to 2021, an excellent smaller share (23 p.c) of whole funding in Canada went to those highly-productive asset classes, in comparison with 44 p.c within the U.S.
Conversely, there was comparatively far more funding in housing in Canada than within the U.S. from 2001 to 2021, however whereas Canada suffers from housing unaffordability, residential development doesn’t contribute considerably to productiveness development.
“The truth that a larger share of funding within the U.S. is concentrated in extremely productive asset classes, whereas funding in Canada is disproportionately targeted on housing is a significant purpose why U.S. productiveness has elevated quicker than in Canada,” Globerman mentioned.
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MEDIA CONTACT:
Steven Globerman, Senior Fellow
Fraser Institute
To rearrange media interviews or for extra info, please contact:
Drue MacPherson, Fraser Institute, (604) 688-0221 Ext. 721
drue.macpherson@fraserinstitute.org
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The Fraser Institute is an impartial Canadian public coverage analysis and academic group with workplaces in Vancouver, Calgary, Toronto, and Montreal and ties to a world community of think-tanks in 87 nations. Its mission is to enhance the standard of life for Canadians, their households and future generations by learning, measuring and broadly speaking the results of presidency insurance policies, entrepreneurship and selection on their well-being. To guard the Institute’s independence, it doesn’t settle for grants from governments or contracts for analysis. Go to www.fraserinstitute.org
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