Aiming for faster Canadian productivity growth: is it possible and should workers care?
Abstract:
Despite fast growth in AI patents, Canadian productivity growth has ground to a halt. This could be due to slower growth in relevant Canadian research, in the conversion of this research into inventions or in the adoption of U.S. and European inventions. AI innovation could be less meaningful for growth than hoped or could yet revitalize growth with a lag. Since Canadian wages may have decoupled from productivity growth, these considerations may be of little import for Canadian workers on average. However, it seems likely that the advent of generative AI will disrupt the current pattern of returns to skills, creating winners and losers.
