The Contribution of ICT-Producing and ICT-Using Industries to Productivity Growth: A Comparison of Canada, Europe and the United States

Both ICT-producing and ICT-using industries have contributed disproportionately to labour productivity growth in the 1990s. In this article, Bart van Ark, Robert Inklaar from the University of Groningen and Robert H. McGuckin of the U.S. Conference Board compare Canada, the United States and Europe in terms of the contribution of ICT-producing and ICT-using industries to productivity growth. In the 1995-2000 period, the contribution of ICT-producing industries to labour productivity growth was similar in Canada and the Europe, but only half that in the United State. In terms of the contribution of ICT-using industries, Canada was in an intermediate position between Europe and the United States. The authors offer as a possible explanation for this latter situation Canada's equally intermediate position between the relative strict labour and product market regulation in Europe and more lax environment in the United States.