Greater Technology Investment Will Help Canada Close Prosperity Gap With the U.S.
Microsoft Canada Co. announces the release of The Institute for Competitiveness & Prosperity report showing Canadian businesses must increase investment in software, machinery and equipment to help improve productivity, competitiveness
MISSISSAUGA, ON, February 2, 2005 - Microsoft Canada Co. today announces the release of The Institute for Competitiveness & Prosperity's second report on Canadian economic performance at Microsoft Canada's Heroes of Innovation event. The report, titled Realizing Canada's prosperity potential, shows that Canada's consistent under-investment in software, capital equipment and machinery is one of the key factors hampering business productivity and competitiveness, resulting in a 16 per cent prosperity gap compared to the United States.
The report's findings show that from 1991 to 2003, Canada's business community annually invested an average of 13.1 per cent less than U.S. businesses in software, capital equipment and machinery, costing Canadians $427 in lost GDP per capita. One conclusion drawn in the report is that more investment in software, machinery and equipment will help increase Canada's overall productivity.
"Although Canada's economy is strong, we can't rest on our laurels. Canadian businesses, government and individuals need to work together to close the prosperity gap," said report author Roger Martin, Chairman of the Institute for Competitiveness & Prosperity and Dean of the Joseph L. Rotman School of Management at the University of Toronto. "From a business perspective, investing in software is one way to help increase productivity, drive innovation and increase our competitiveness on the world stage."
Microsoft Canada's Heroes of Innovation event highlights the accomplishments of IT professionals who are using technology to help make their companies more competitive. Canadian businesses like the Credit Valley Hospital, ESCADA Canada, Frontier Adventure Racing, Grand & Toy, and Stolt Sea Farm are just a few of the organizations being highlighted by Microsoft Canada this year for using the integrated innovation of Microsoft-based technology to overcome business challenges and stay ahead of the competition.
"Microsoft-based technology gives us the necessary tools to help anticipate customer needs and provide better service, making us more competitive in a very aggressive business retail marketplace," said John Melodysta, CIO, Grand & Toy. "With over 50 per cent of our business now conducted over the Web, it is crucial that we stay current with IT in order to continue serving customers the best way possible as we move forward."
"Technology innovation is continuing to increase rapidly - today's IT tools are designed to help companies better interact with customers, and provide increased visibility across business operations," said David Hemler, President, Microsoft Canada. "Microsoft Canada's large Canadian technology partner community is committed to working with Canadian businesses to help them realize their full potential, and leverage information technology to drive business value."
In addition to increasing productivity, the report suggests that Canadian government needs to strike the right balance between spending on current consumption, such as health care and social services, and investing for future prosperity, such as infrastructure and education. With businesses, government and Canadians working together, Canada can move towards closing the prosperity gap and realizing its full economic potential.
The complete report is available for downloading directly at http://www.competeprosper.ca/public/dav05.pdf
About the Institute for Competitiveness & Prosperity
The Institute is an independent not-for-profit organization established in 2001 to serve as the research arm of Ontario's Task Force on Competitiveness, Productivity and Economic Progress. The Institute and the Task Force are supported through the Ministry of Economic Development and Trade.
About Microsoft Canada Co.
Established in 1985, Microsoft Canada Co. is the Canadian subsidiary of Microsoft Corporation (Nasdaq "MSFT") the worldwide leader in software, services and solutions that help people and businesses realize their full potential. Microsoft Canada provides nationwide sales, marketing, consulting and local support services in both French and English. Headquartered in Mississauga, Microsoft Canada has 10 regional offices across the country dedicated to empowering people through great software - any time, any place and on any device. Visit Microsoft Canada's web site at www.microsoft.ca
©2005 Microsoft Corporation. Microsoft is either a registered trademark or trademark of Microsoft Corporation in the United States and/or other countries.
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