Last Updated on January 24, 2019
The success of Apple and Google in attracting a market cap of $509 billion and $356 billion respectively – captured the attention of several business thinkers at the World Economic Forum earlier this year. These individuals felt that the rapid proliferation of “disruptive technologies” made it virtually impossible to predict the future course of global commerce as these technologies posed a challenge to the sustainability of several traditional business models.
However, instead of viewing these technologies as being disruptive, one needs to view them as being transformative because in an interconnected knowledge-based global economy, future growth would only take place in areas where the highest innovation and technological advances are taking place. This naturally means places where workers have the greatest skills and not places having the lowest cost labour.
The transformative power of the knowledge economy would enable all businesses across all industries and sectors to reap the benefits of technological advances, productivity gains, economic growth and gain access to a highly skilled workforce. To capitalise on this, Canada would need to initiate the process of developing its emerging knowledge economy.
In the knowledge economy, Canada has immense potential. Its Information and Communications Technologies (ICT) sectors are worth $155 billion in annual revenues and accounts for 35 percent of the spending on research and development spending, according to data published by Industry Canada in March 2013. In addition, the ICT sector outgrew the overall economy in 2011, increasing by 3.2 percent as opposed to a 2.6 percent increase registered by the total Canadian economy.
However, even as the Canadian industry has produced aggressive drivers of ICT technology, it has always underinvested in the knowledge economy, which hinders the global competitiveness of Canadian businesses.
Therefore, the authorities need to create market conditions that result in innovations and help the knowledge economy flourish. This would only come about through public and private investment, a supportive educational framework, immigration policies and a proactive economic agenda from the government.
Producing graduates with the right skills and expertise would help feed the knowledge and ICT sectors, which would have the greatest potential for growth. While there are no guarantees, graduates with the right skills could have a great chance a career in their chosen fields. By committing itself to developing the knowledge sector, Canada would be able to sustain its standards of living as well as remain a player on the global stage.
Source: The Globe and Mail