Canadian Corporate Productivity Is Suffering Because of a Lack of Investment in Innovation

Most Canadian companies are lagging on technology investments toward better productivity from that of the U.S, according to Globe & Mail’s today and September 15^th analysis. Strangely enough, this happens at the time of relatively healthy Canadian market.

With dropped demand and uncertain about the future, businesses are reluctant to invest and, as result, “recovery running on ‘sweat and toil… not brains and innovation’” (by Douglas Porter, BMO economist)

First, country depended on lower dollar to make its offerings attractive (12%), then Ottawa’s taxes are called second major reason for putting off innovations (22%), and now weak talent pool is named as 4^th major obstacle (15%). Are these truly valid reasons?

I personally don’t believe in the lack of talent. Talented people should only be stimulated. In fact, lack of the progress discourages employees even more: labor productivity, or output per hours worked, is falling in Canada event further from the first quarter in 2010. We have a ‘catch 22′ situation here.

By implementing business intelligence technology solutions, for example, businesses can both improve productivity of knowledge workers (from 20 to 80%, by different surveys) and boost morale by freeing staff from routine, never ending tasks, for creative analytical work that makes them active participants in enterprise decision making and helps grow business.

There’s never excuse for doing nothing. It is a good time to focus on the future, utilize the right talent and become prepared to compete for the upcoming business opportunities.