What Explains the Canada-U.S. Software Investment Intensity Gap?

Andrew Sharpe ()

No 2014-04, CSLS Research Reports from Centre for the Study of Living Standards

Abstract: In 2012, business sector software investment per worker in Canada was 40.7 per cent of that in the United States. The objective of this report is to deepen our understanding of the reasons for which Canadian businesses invest substantially less in software than their U.S. counterparts. The report reviews the state of the software investment landscape in Canada, discusses the views of industry experts obtained through key informant interviews, and assesses possible explanations for the software gap. About one-third of the gap can be assigned to differences in labour productivity, industry structure, and measurement methodologies between the two countries. The remaining two-thirds are more difficult to explain.

Keywords: Canada; United States; Software; Investment; Gap; Productivity; Business Sector (search for similar items in EconPapers)
JEL-codes: D24 E22 J24 L86 N92 O47 (search for similar items in EconPapers)
Date: 2014-10
New Economics Papers: this item is included in nep-mac
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Citations: View citations in EconPapers (3)

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