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Can the Canada-U.S. ICT investment gap be a measurement issue?

Author: Andrew Sharpe; Vikram Rai; Centre for the Study of Living Standards.; Canada. Industry Canada.
Publisher: Ottawa, Ont. : Centre for the Study of Living Standards, 2013
Series: CSLS research report, 2013-13.
Edition/Format:   eBook : Document : English
Summary:
In 2011, business sector investment per worker in information and communications technology (ICT) in Canada was only 57.8 per cent of the U.S. level, indicating an ICT investment per worker gap of 42.2 percentage points. Numerous explanations have been advanced to explain this gap, one of which is that the ICT investment data from Statistics Canada and the Bureau of Economic Analysis are not strictly comparable. The  Read more...
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Genre/Form: Electronic books
Material Type: Document, Internet resource
Document Type: Internet Resource, Computer File
All Authors / Contributors: Andrew Sharpe; Vikram Rai; Centre for the Study of Living Standards.; Canada. Industry Canada.
OCLC Number: 855800416
Notes: "May 2013."
Cover title.
Description: 1 online resource (137 pages) : color illustrations, digital file.
Contents: Introduction. I. The Canada-U.S. ICT investment per worker gap. A. The Canada-U.S. ICT investment per worker gap ; B. Other measures of relative ICT performance ; C. Determinants of the Canada-U.S. ICT investment per worker gap ; D. International comparisons of ICT investment ; E. Canada-U.S. comparisons of non-ICT investment per worker --
II. Decomposition of the Canada-U.S. ICT investment gap by component, industry, and province. A. Decomposition by component ; B. Decomposition by industry of total ICT investment per worker gap ; C. Decomposition by industry of computer investment per worker ; D. Decomposition by industry of communications equipment investment per worker ; E. Decomposition by industry of software investment per worker ; F. Decomposition by province --
III. Proximate causes of the Canada-U.S. ICT investment per worker gap. A. Labour productivity ; B. Industrial structure --
IV. Contribution of differences measurement methodology to the Canada-U.S. ICT investment per worker gap. A. Differences in definitions ; B. Purchases of used equipment ; C. Differences in software investment measurement methodology --
V. Review of factors contributing to the Canada-U.S. ICT investment per worker gap. A. Firm size ; B. Education of managers ; C. Corporate tax policy ; D. Business attitudes and culture ; E. Other factors --
VI. Issues for further research --
VII. Recommendations --
VIII. Conclusion --
References --
Appendix A: Data sources. A. Investment ; B. Employment ; C. Gross domestic product ; D. Purchasing power parity.
Series Title: CSLS research report, 2013-13.
Other Titles: Can the Canada-United States information and communications technology investment gap be a measurement issue?
Responsibility: Andrew Sharpe and Vikram Rai ; prepared for Industry Canada by the Centre for the Study of Living Standards.
More information:

Abstract:

In 2011, business sector investment per worker in information and communications technology (ICT) in Canada was only 57.8 per cent of the U.S. level, indicating an ICT investment per worker gap of 42.2 percentage points. Numerous explanations have been advanced to explain this gap, one of which is that the ICT investment data from Statistics Canada and the Bureau of Economic Analysis are not strictly comparable. The primary focus of this report is to analyze that hypothesis. We compare the methodology used to measure ICT investment in Canada and the United States and find that issues related to measurement account for approximately 4 percentage points (10 per cent) of the gap. Although software investment has been responsible for 90 per cent of the gap in recent years, seven out of 17 industries in Canada actually had greater investment per worker levels than the United States in both total ICT and software. A small number of ICT-intensive industries has been responsible for a substantial part of the gap. In particular, information and cultural industries accounted for 39.1 per cent of the total gap. This supports the conclusion that the Canada-U.S. ICT investment per worker gap is largely the result of industry-specific factors which affect software investment.

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