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  • CCPA SK Annual General Meeting October 11, 2019
    Please join us for our Annual General Meeting in Saskatoon, 5:00pm, Thursday, October 24th at Station 20 West. (1120 20th St. West) Courtney Carlberg, author of Saskatchewan's Failing Report Card on Child Care, will discuss why Saskatchewan ranks the lowest for overall quality and rates of access to regulated child care in the country and […]
    Canadian Centre for Policy Alternatives
  • Corporate Mapping Project receives award for research excellence October 9, 2019
    The co-directors of the Corporate Mapping Project—CCPA-BC Director Shannon Daub and the University of Victoria’s William Carroll—are being celebrated in Victoria today as they accept a REACH Award for Excellence in Research. The REACH Awards recognize “research excellence” as demonstrated through scholarly contributions and societal impact. Since the inception of the Corporate Mapping Project, Shannon […]
    Canadian Centre for Policy Alternatives
  • Unpacking the details of Manitoba Hydro September 9, 2019
    What would a long view of Manitoba Hydro all entail.  Read report here.
    Canadian Centre for Policy Alternatives
  • CCPA submission to Treasury Board consultation on regulatory modernization September 6, 2019
    On June 29, 2019, the federal government launched a public consultation on initiatives intended to "modernize" the Canadian regulatory system. Interested Canadians were invited to provide input on four current initiatives: Targeted Regulatory Reviews (Round 2) Review of the Red Tape Reduction Act Exploring options to legislate changes to regulator mandates Suggestions for the next […]
    Canadian Centre for Policy Alternatives
  • Join us in November for the 2019 CCPA-BC Gala, featuring Nancy MacLean September 3, 2019
    Tickets are available for our 2019 Annual Gala Fundraiser, which will take place in Vancouver on November 21. This year’s featured speaker will be Nancy MacLean, an award-winning historian and author whose talk, The rise of the radical right: How libertarian intellectuals, billionaires and white supremacists shaped today’s politics, is very timely both in the US and here in […]
    Canadian Centre for Policy Alternatives
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The Progressive Economics Forum

Industry Canada Pans Free Trade?

Shortly before I left Canada, Canadian Business magazine contacted me for a story on productivity. It highlighted a presentation by Industry Canada economist Annette Ryan.

I was struck by slide 40 (41 of 44 in the PDF):

In an endogenous sunk cost model, opening free trade and intensifying competition leads to a divergence in innovation paths. Firms in the less productive country are unable to sustain costly innovations necessary to increase own demand, and thus retrench after an initial common escalation phase. . . .

In R&D [research and development] intensive industries, Canadian industries experienced an average net loss of 1.1% in R&D intensity after NAFTA, while US industries experienced an average net gain of 1.8% in R&D intensity.

The locking-in of Canada’s less productive and less innovative industrial structure is exactly what critics of free trade had feared, and the opposite of what free trade promoters had promised.

The same concern seems relevant as Canada contemplates a free trade deal with Europe, which enjoys an appreciable lead in R&D-intensive industries.

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