Canada a land of mediocrity Conference Board Report

 

HEATHER SCOFFIELD

 

From Wednesday's Globe and Mail

 

June 13, 2007 at 5:00 AM EDT

 

Canada's failure to innovate is spilling over into the economy, environmental protection, health care, education, and poverty eradication - turning the country into a land of stifling mediocrity, according to a harsh new report card from the Conference Board of Canada.

 

"This country is doing dismally in the critically important area of innovation," writes the board's president, Anne Golden. "And the implications of that failure ... show up in the absence of creative policy and investment decisions across all the other domains."

 

The report card, to be released today, compares Canada's performance in six domains to that of 16 other industrialized countries. The only area in which Canada receives an A is education, mainly because the country is good at pumping large quantities of students through to postsecondary institutions.

 

But even in education, Canada falters when it comes to producing highly educated professionals who spawn creativity, the report says.

 

At the other end of the spectrum, Canada's low levels of literacy are "shocking," and prevent workers from functioning efficiently and competently in the labour force, the report says. As well, employer investment in training is falling.

 

In the economy, health and society domains, Canada gets a B - although lack of innovation is impeding progress.

 

In economics, Canada gets top marks for low inflation, and does well in growth, labour productivity and unemployment.

 

It gets low marks, however, for its ability to attract foreign direct investment, which often brings in fresh ideas, more investment, advanced technology and entrepreneurial ideas.

 

In health care, Canada does well at saving people from the flu and pneumonia, but performance on infant mortality and death from diabetes is weak.

 

Since Canada's health-care system is geared toward resolving urgent needs, little innovative thinking is done on how to prevent illness, the report says. Canada ranks 10th out of 17 in the "society" domain, mainly because of subpar rankings on poverty among children and the working-age population.

 

It ranks well in reducing poverty among old people.

 

But Canada fares miserably in the areas of innovation and environment, earning a D grade in both categories.

 

While Canada's air and water quality are high, and protection of biodiversity is solid, our level of waste generation and our battle to curb climate change are rock bottom, the report says.

 

Again, the lack of creative thinking to solve these problems slows progress, Ms. Golden said. And so it's no surprise that in the innovation category, Canada ranks 14th out of 17 countries - "an alarming portent for the future."

 

Canada's scientists don't keep up with their global peers in the number of articles published, and its inventors don't keep up in the number of patents, the report shows. For its competitive advantage, it relies on natural resources, and adds little value to goods or services. Canada has a shortage of skilled labour and graduates a low share of science, engineering and trades experts.

 

The country doesn't take advantage of high technology, or keep up in the commercialization of knowledge.

 

"Canadians are complacent and generally unwilling to take risks," the report scolds. "This culture holds Canada back."

 

How does the country move forward? Conference Board has 10 suggestions

 

In a report to be released today on the ranking of Canada's economy among those of 16 other nations, the Conference Board of Canada pulls no punches in its harsh assessment of the country's performance, but also offers solutions.

 

Here are 10 things the board says Canada could do to rid itself of mediocrity:

 

1) Focus investments on commercialization.

 

2) Promote cross-border investment flows.

 

3) Cut taxes on capital investment.

 

4) Cut red tape.

 

5) Set up a cap-and-trade system to put a price on emissions.

 

6) Recognize immigrants' credentials.

 

7) Finance a handful of world-class universities.

 

8) Teach all adults to read well.

 

9) Fund health promotion.

 

10) Spend more on social programs for children and poor workers.

 

Heather Scoffield

 

Innovation report card

 

Rank Country Grade

1 Switzerland A

2 Sweden B

3 Finland B

4 United States B

5 Germany B

6 Netherlands C

7 Britain C

8 Belgium C

9 Denmark C

10 Ireland C

11 Japan C

12 Austria D

13 France D

14 CANADA D

15 Norway D

16 Australia D

17 Italy D

 

SOURCE: CONFERENCE BOARD OF CANADA