“Productivity is the single most important determinant of a country’s prosperity over the longer term. Countries and provinces that are innovative and able to adapt to the ebb and flow of the new global economy boast higher productivity and thus a superior standard of living,” reads the report card.

The Ottawa-based Conference Board defines productivity as “a measure of how efficiently goods and services are produced.”

Innovation, meanwhile, is defined as “a process through which economic or social value is extracted from knowledge—through the creating, diffusing and transforming of ideas—to produce new or improved, products, services, processes, strategies or capabilities.”

Innovation, adds the Board, is one of the main drivers of productivity.

“Improving productivity is not about working longer or harder; it’s about working smarter.

It’s about finding more efficient and effective ways to produce goods and services so that more can be produced with the same amount of effort,” explains the report card.

Despite the low grades, not all the news is bad on the productivity/ innovation front.

Canada’s automotive industry—one of the major legs of the manufacturing sector—is relatively healthy. Ottawa has been pouring cash into this sector to push R&D, thus giving innovation a boost. And, despite a dip in August, overall manufacturing sales are higher than they were last year.

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