How IT, Including the Cloud and IOT, Can Drive Canadian Economic - - PowerPoint PPT Presentation

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How IT, Including the Cloud and IOT, Can Drive Canadian Economic - - PowerPoint PPT Presentation

October 30, 2014 How IT, Including the Cloud and IOT, Can Drive Canadian Economic Growth Dr. Robert D. Atkinson, President, ITIF @RobAtkinsonITIF The Information Technology and Innovation Foundation is a Washington, D.C.-based think tank at


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October 30, 2014

How IT, Including the Cloud and IOT, Can Drive Canadian Economic Growth

  • Dr. Robert D. Atkinson,

President, ITIF

@RobAtkinsonITIF

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The Information Technology and Innovation Foundation is a Washington, D.C.-based think tank at the cutting edge of designing innovation policies and exploring how innovation will boost growth quality of life around the globe. ITIF focuses on:

  • Innovation processes, policy, and metrics,
  • Internet, big data and IT policy,
  • IT and economic productivity,
  • Science and tech policy, and
  • Innovation and trade policy.
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Today’s Presentation

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IT-Related Causes of the Canada-US Productivity Gap

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Some Thoughts on Next Steps For Government

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Cloud and Other IT Technologies Driving Change

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Cloud Computing: Latest Buzzword or Next New Thing?

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Cloud “Hype” Peaked in 2010

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Source: Gartner’s Technology Hype Cycle

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Now Cloud is Ready for the “Slope of Enlightenment”

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Source: Gartner’s Technology Hype Cycle

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Why Cloud?

  • Computing used

to look like this:

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Why Cloud?

  • Then it looked

like this:

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Why Cloud?

  • Now it is

looking more like this:

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Reasons for Using the Cloud

According to McKinsey:

  • Increased business flexibility by 70%
  • Ability to scale up to meet changing needs by 55%
  • Lowered unit cost of by IT by 29%
  • Disaster recovery and business continuity increased

by 22%

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But its more than Cloud, It’s “SMIOTACK”

  • Social
  • Mobile
  • Internet of Things
  • Analytics
  • Cloud
  • Kiosks

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Today’s Presentation

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IT-Related Causes of the Canada-US Productivity Gap

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Some Thoughts on Next Steps For Government

1

Cloud and Other IT Technologies Driving Change

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Divergence in Canada-US Productivity Since 1970

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GDP per hour worked, Source: The Conference Board, Total Economy Database

$- $10 $20 $30 $40 $50 $60 $70 $80 EU-15 U.S. Canada

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Canada Has Been Falling Behind the U.S. in Labor Productivity

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Annual Labor Productivity Growth Source: The Conference Board, Total Economy Database

0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% 1980-1995 1995-2005 2005-2013 EU-15 U.S. Canada

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Most U.S. Advantage Comes From IT Use

2000 to latest year, percentage points per annum. Source: Nicholas Oulton, “Long Term Implications of the ICT Revolution: Applying the Lessons of Growth Theory and Growth Accounting,” Economic Modelling 29, no. 5 (2012)

0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 Slovenia Italy Ireland Germany Austria France Netherlands Czech Rep. Spain Canada Hungary U.K. Japan Denmark Belgium Australia Finland Sweden U.S.A. ICT use effect ICT output effect

U.S. Canada

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U.S. Businesses Invest More in IT

Share of GDP, 2010; Source: National Science Foundation, Science and Engineering Indicators 2014

0% 1% 2% 3% 4% 5% 6% 7% All developed countries Canada United States South Korea United Kingdom EU Consumer Business

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  • US. Exceeds Canada in Share of

Business Investment Going to IT

ICT assets as percentage gross fixed capital formation, 2011. Source: OECD, Science, Technology and Industry Scoreboard 2013

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Today’s Presentation

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IT-Related Causes of the Canada-US Productivity Gap

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Some Thoughts on Next Steps For Government

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Cloud and Other IT Technologies Driving Change

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  • Tech-neutral government access rules.
  • Strengthen laws governing computer fraud and abuse.
  • Avoid geographic restrictions on where providers can store

data, use data security or privacy laws to disadvantage foreign firms.

Create “Cloud-Neutral” Policies

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Focus More on ICT Use e by All Canadian Organizations

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Work to be the global leader use, through PPPs:

  • Smart Cities
  • Health Analytics
  • IOT Deployment in Government-Related Uses
  • ITS Deployment
  • Digital Cash
  • Digital Signatures
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Be the most friendly nation in the world for IT-driven business model disruption

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  • Scale matters
  • Canadian firms are smaller than American.
  • The large-firm share of the services

sector was 40.2% in Canada in 2008, compared with 52.8% in the United States.

Reduce SME Preferences, Exemptions and Subsidies

Source; Statistics Canada

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www.globalinnovationrace.com

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Robert D. Atkinson ratkinson@itif.org

www.itif.org @RobAtkinsonITIF www.innovationfiles.org facebook.com/innovationpolicy www.youtube.com/techpolicy

Follow ITIF

Thank You