OECD Economic Surveys: Canada 2012

Table of contents
Basic statistics of Canada
, 2011
Executive summary
Assessment and recommendations
	Overview
	Macroeconomic developments
		Figure 1. Economic indicators
		Figure 2. Merchandise exports by region
		Figure 3. The share of manufacturing in the Canadian economy is heavily influenced by the exchange rate
		Figure 4. The shifting pattern of real per capita incomes across the provinces
		Table 1. Short­term projections
	Monetary and financial­market policies
		A delicate balancing act for monetary policy
			Figure 5. Interest rates
		Housing­related debt presents risks to financial stability
			Figure 6. Credit indicators
			Figure 7. Housing indicators
		Reforms to financial supervision are in progress
	Fiscal policies to support strong and inclusive long­term growth
		Figure 8. Net government debt as per cent of GDP
		Federal fiscal consolidation is underway
			Table 2. The 2012 federal budget outlook
			Figure 9. Share of market­based income inequality offset by the tax and transfer system in OECD countries
		Promoting longer­term sustainability and inclusive growth
			Table 3. Aggregate provincial and territorial fiscal indicators
			Figure 10. Health­care expense indicators
			Box 1. Federal government’s major transfers to provinces and territories
			Box 2. Recommendations for macroeconomic and financial policies
	Canada’s key long­term challenge is to boost productivity growth
		Figure 11. Productivity in Canada relative to the United States
	Fostering business innovation
		Figure 12. Fiscal support and business R&D investment, 2009
		Taxation is becoming more competitive internationally
		Innovation support is being rebalanced toward private­sector needs
			Figure 13. Venture capital investment, 2009
		Is competition providing the necessary spur to innovation?
			Figure 14. Product and labour market regulation indicators
		Is there a commercialisation gap?
		Innovation can also help reduce the costs of avoiding environmental degradation
			Box 3. Recommendations for enhancing innovation outcomes
	Strengthening higher education
		Figure 15. Unemployment rate by education level
		Tertiary education attainment needs to continue to expand to meet long­term requirements
		Immigration may be an under­utilised source of skilled labour
		Strengthening skills for innovation
			Figure 16. Graduation (attainment) rates for Master’s and PhD programmes, 20091
		Strategies to foster a high­quality system
			Figure 17. Ratio of university full­time students to full­time faculty
			Box 4. Policy recommendations for improving tertiary education
	Bibliography
	Annex A1. Progress in structural reform
Chapter 1. Unleashing business innovation
	The Canadian productivity paradox
		Figure 1.1. Economic performance of Canada relative to the United States
		Table 1.1. Decomposition of Canada­US gap in average annual labour productivity growth
		Figure 1.2. Research and development expenditure
		Figure 1.3. ICT investment in Canada relative to USA
		Table 1.2. Labour productivity, multifactor productivity and capital intensity comparisons
		Table 1.3. MFP growth decomposition
	The state of innovation
		The innovation ecosystem
			Figure 1.4. Science and innovation profile of Canada1
			Box 1.1. Capturing innovation through intangible investments
				Table 1.4. Intangible investments
				Table 1.5. Intangible investments, selected OECD countries
		System performance
			Figure 1.5. Innovation strategies by firm size, 2006­08
			Figure 1.6. Share of high technology manufacturing in GDP
			Figure 1.7. Business R&D intensity and natural resource intensity
			Figure 1.8. BERD intensity in Canada
	Policy drivers and barriers to innovation
		Economic openness
		Entrepreneurship
			Figure 1.9. Ease of doing business1
			Box 1.2. Attitudes to risk and managerial quality
				Figure 1.10. Educational attainment of managers and workers
		Fiscal incentives
			Table 1.6. Federal and provincial tax credit rates
			Figure 1.11. Tax subsidy rate on investment in R&D
		Financing
			Figure 1.12. Trend in VC investment, USA and Canada
			Figure 1.13. VC funding sources in Canada and the United States
			Figure 1.14. Business angel networks/groups
		Skills
		Knowledge flows
			Box 1.3. Geographical clusters
	Conclusions
		Box 1.4. Recommendations for boosting business innovation
	Notes
	Bibliography
Chapter 2. Tertiary education: Developing skills for innovation and long­term growth
	Box 2.1. Human capital and productivity in Canada
		Figure 2.1. Productivity and university attainment across provinces
	Box 2.2. The tertiary education system in Canada
	Educational attainment
		Figure 2.2. Population with tertiary education, 2009
		Figure 2.3. Graduation (attainment) rates for college and university programmes
		Box 2.3. Québec’s education system
	Access to higher education
		Figure 2.4. Participation rates in university and college
		Figure 2.5. Post­secondary participation rates by parental education
		Overcoming barriers to equitable access
			Figure 2.6. Average tuition fees by province
			Figure 2.7. Average annual university tuition fees for full­time students
			Box 2.4. Financial support for students in Canada
			Figure 2.8. Public subsidies for education to private entities for tertiary education
	Outcomes of the education system
		Skills to meet labour­force needs
			Figure 2.9. Relative earnings of 25­64 year­olds with tertiary education, 2009
			Figure 2.10. Earnings premium and employment rate relative to high school graduates
			Table 2.1. Employment of tertiary graduates by skill level
			Figure 2.11. Earnings distribution of 25­64 year­olds with university education
			Figure 2.12. Citizens studying abroad in tertiary education, by country of destination, 2009
			Figure 2.13. Share of university graduates by field
		Supply of innovation skills
			Figure 2.14. Science and engineering graduates at doctorate levels, 2009
	The higher education system: aligning institutional incentives with policy priorities
		Financing tertiary education institutions
			Figure 2.15. Funding to tertiary education
			Figure 2.16. Expenditure on tertiary education institutions
		The impact of public funding strategies
		Strengthening the tertiary education sector’s contribution to innovation
			Box 2.5. Initiatives to support research and innovation
			Box 2.6. The quality­assurance framework for higher education in Canada
		Fostering a high­quality system
			Figure 2.17. Ratio of university full­time students to full­time teaching staff
			Box 2.7. Policy recommendations for improving tertiary education
	Notes
	Bibliography