Tech Thursday Recap: The Productivity Crisis in Canada
Everything you missed from last week's Tech Thursday
Last week’s Tech Thursday event, The Productivity Crisis in Canada, brought together an impressive lineup of industry leaders to tackle one of the most pressing economic issues facing the country. The discussion featured:
Jeff Adamson (Co-Founder, Neo Financial)
Janak Alford (Deputy Minister of Innovation, Government of Alberta)
Michael Mahon (CEO, Alberta Innovates)
Ruhee Ismail-Tej (VP of Policy and External Affairs, Calgary Chamber of Commers)
Below is a recap of the top ideas discussed at the event, from my perspective.
Understanding the Productivity Challenge
The conversation opened with a critical reframing of productivity—moving beyond the misconception that it’s about working harder. True productivity is about value creation and leveraging innovation to improve efficiency across industries. While Canada has significant natural resources, a well-educated population, and high mobile adoption, it lags in productivity compared to peer nations.
Key Statistics:
Canada’s productivity has declined from 6th to 18th in the OECD rankings.
Canadian businesses produce 50% of the productivity of their U.S. counterparts.
Canada’s R&D investment is 1.7% of GDP, far below leading nations.
Photo Credit: Byron (byrontakespictures@gmail.com)
Why is Canada Falling Behind?
While Canada has immense potential, it struggles with regulatory barriers, risk aversion, and a lack of investment in innovation. Alberta is one of the few provinces exceeding U.S. productivity averages, while Ontario lags behind, comparing unfavourably to states like Alabama.
Regulatory Barriers and Government Inefficiency
A cumbersome regulatory environment slows down business operations and public services. As an example: it takes 110 days to register a mortgage in Alberta, while ordering food takes just 15 minutes. Government inefficiencies are a major bottleneck, and leveraging AI in public services could cut procurement timelines from 8.2 months to 7 days.
Photo Credit: Byron (byrontakespictures@gmail.com)
Innovation and R&D: Canada’s Missed Opportunity
Canada’s lack of collaboration between industry, government, and academia was another recurring theme. Canada’s innovation infrastructure is weak compared to successful ecosystems like Research Triangle Park in the U.S. and Germany’s industry-university partnerships.
What’s needed?
A more integrated approach between universities and businesses.
Greater incentives for R&D investments, especially in high-potential sectors.
A cultural shift towards risk-taking and entrepreneurship.
The Reality: Canada has 100,000 fewer entrepreneurs than it did 20 years ago. If this trend continues, our ability to compete globally will weaken further.
The Role of AI and Emerging Technologies
AI was a major talking point as a potential game-changer for productivity. Panelists see AI streamlining public services, reducing bureaucratic inefficiencies, and freeing up capital for private sector innovation. However, adoption remains slow due to skepticism and lack of training.
Biggest Challenges to AI Adoption:
The Learning Curve – Many users need 3–4 months of consistent engagement before AI’s impact is clear.
Lack of Documentation – Many government and corporate processes are not well-mapped, making AI integration difficult.
If addressed, AI could help unlock billions in economic potential while enabling faster decision-making.
Photo Credit: Byron (byrontakespictures@gmail.com)
Fixing Canada’s Risk-Averse Culture
A major barrier to innovation in Canada is its cultural reluctance to take risks. Canada prioritizes stability over disruption, in contrast to the U.S. and Israel, where entrepreneurship is actively celebrated.
How to Foster a Risk-Taking Culture?
Celebrate entrepreneurs and inventors, much like past generations celebrated Canadian heritage moments.
Encourage corporate leaders to invest in R&D, rather than prioritizing short-term profits.
Reduce regulatory complexity—Canada has over 600 regulators, many of which create unnecessary roadblocks.
If Canada embraced failure as a learning experience, rewarded risk-takers, and simplified its business environment, it could reverse its productivity slump.
What Needs to Change?
The panelists agreed that Canada needs a national productivity strategy, but emphasized that it starts with grassroots efforts and cultural shifts.
Key Takeaways for Action:
Demand policy change – Regulatory reform and public investment in innovation must be election priorities.
Embrace AI and automation – Both private and public sectors need to adopt AI-driven efficiencies.
Encourage entrepreneurship – Canada must remove bureaucratic hurdles and support new business ventures.
Invest in R&D – Businesses and governments must collaborate to drive innovation.
Tell a better story – Productivity isn’t just about numbers; it’s about creating a competitive, resilient, and future-ready Canada.
Final Thoughts
Despite the challenges, the panel ended on a note of optimism. Calgary and Alberta are emerging as national leaders in productivity and innovation, setting an example for the rest of Canada. The key now is scaling these successes nationally.
If Canada wants to remain competitive on the world stage, it’s time for bold changes, bigger investments, and a shift in mindset.
What role will you play in this transformation?
Thanks for the recap, Philippe.
Great insights and nice to see that Alberta is leading in productivity in Canada. One thing that stood out to me is the fact that "Canada has 100,000 fewer entrepreneurs than it did 20 years ago." This figure is staggering given how much more acceptable it is to be an entrepreneur now than 20 years ago. The number of startups has also grown significantly over the past 20 years. Were there any insights on why the decline is happening and seemingly counter to what we're seeing in Calgary and Alberta as a whole?