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Home > About > News > A national wake-up call for innovation and growth
March 6, 2025
In March 2024, the Bank of Canada’s senior deputy governor, Carolyn Rogers, sounded the alarm on the productivity crisis in Canada.
On February 13, 2025, Alberta Innovates’ CEO Mike Mahon was invited to join a panel hosted by Calgary organization Tech Thursday to discuss Canada’s productivity crisis. Additional speakers included:
During the conversation, an important distinction regarding productivity was made: “it isn’t about working harder; it’s about working smarter—leveraging technology, innovation, and efficiency to create more value with less effort.”
This means rethinking how we approach work, business, and public services.
Productivity is a measure of how efficiently goods and services are produced within an economy, organization, or individual workflow. It is typically expressed as the ratio of output (such as goods, services, or revenue) to input (such as labour, capital, or resources).
Canada is facing a productivity crisis, and the numbers don’t lie. Our global productivity ranking has slipped dramatically, falling from sixth to eighteenth among OECD nations. This isn’t just an abstract economic issue; it has real consequences for our standard of living, our economic competitiveness, and our ability to sustain critical public services. The good news? We have the resources, talent, and technology to turn things around—but we need to act fast.
“Productivity isn’t just about doing more; it’s about creating more value per hour worked. That means better products, better services, and better efficiency,” said Jeff Adamson.
Several factors contribute to Canada’s lagging productivity:
Artificial intelligence is poised to revolutionize productivity in both the private and public sectors. Janak Alford pointed out that AI could cut procurement timelines from months to days, making public services more responsive and effective. Beyond streamlining bureaucracy, AI can boost productivity by automating repetitive tasks, improving decision-making, and allowing workers to focus on higher-value activities.
"If we leverage AI correctly, we can drastically improve how we operate," he noted. "But it requires investment and a willingness to rethink traditional processes."
Beyond technology, cultural factors play a role in productivity. The panelists discussed the need to reignite Canada’s entrepreneurial spirit. Risk-taking has become less common, and many potential entrepreneurs are discouraged by regulatory hurdles and limited funding opportunities.
"Entrepreneurs are the backbone of any thriving economy," one of the panelists said. "We need to celebrate risk-takers and provide them with the support they need to succeed."
Languishing in a productivity crisis is not inevitable. By reducing red tape, investing in R&D, embracing AI, and fostering a culture of innovation, we can reclaim our position as a global productivity leader.
“When you go into other countries and you see the kind of alignment that exists, you then start to understand why they are able to drive innovation so effectively in a way that is cross-cutting and country-wide,” said Mike Mahon. “I spent time in Germany and saw how the universities were aligned with industry. That sort of connectivity between the entities was unbelievable. We need to align our policies, our industries, and our institutions toward a common goal."
The challenge is significant, but the opportunity is even greater. The question is are we ready to step up?
Tech Thursdays are put on by the Winnipeg and Calgary tech community. Watch for more participation in these events in the future from Alberta Innovates.
The events are presented by Neo Financial and sponsored by SkipTheDishes, Manitoba Technology Accelerator, Calgary Economic Development, Snowflake, Calgary Tech Journal, The Pioneer Event Co, Amiron Ventures, Norima Consulting, Go Oil, and Hilltop Partner Network.