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 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. 2

Today’s Presentation Cloud and Other IT Technologies Driving 1 Change IT-Related Causes of the Canada-US 2 Productivity Gap Some Thoughts on Next Steps For 3 Government 3

Cloud Computing: Latest Buzzword or Next New Thing?

Cloud “Hype” Peaked in 2010 Source: Gartner’s Technology Hype Cycle 5

Now Cloud is Ready for the “Slope of Enlightenment” Source: Gartner’s Technology Hype Cycle 6

Why Cloud?  Computing used to look like this:

Why Cloud?  Then it looked like this:

Why Cloud?  Now it is looking more like this:

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%

But its more than Cloud, It’s “SMIOTACK”  Social  Mobile  Internet of Things  Analytics  Cloud  Kiosks 11

Today’s Presentation Cloud and Other IT Technologies Driving 1 Change IT-Related Causes of the Canada-US 2 Productivity Gap Some Thoughts on Next Steps For 3 Government 12

Divergence in Canada-US Productivity Since 1970 $80 $70 $60 $50 EU-15 $40 U.S. Canada $30 $20 $10 $- GDP per hour worked, Source: The Conference Board, Total Economy Database 13

Canada Has Been Falling Behind the U.S. in Labor Productivity 3.0% 2.5% 2.0% EU-15 1.5% U.S. Canada 1.0% 0.5% 0.0% 1980-1995 1995-2005 2005-2013 Annual Labor Productivity Growth Source: The Conference Board, Total Economy Database 14

Most U.S. Advantage Comes From IT Use U.S. U.S.A. Sweden Finland Australia Belgium Denmark Japan U.K. Hungary Canada Canada Spain Czech Rep. Netherlands France Austria Germany Ireland Italy Slovenia 0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 ICT use effect ICT output effect 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)

U.S. Businesses Invest More in IT 7% 6% 5% 4% Consumer 3% Business 2% 1% 0% All developed Canada United States South Korea United Kingdom EU countries Share of GDP, 2010; Source: National Science Foundation, Science and Engineering Indicators 2014

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

Today’s Presentation Cloud and Other IT Technologies Driving 1 Change IT-Related Causes of the Canada-US 2 Productivity Gap Some Thoughts on Next Steps For 3 Government 18

Create “Cloud-Neutral” Policies  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.

Focus More on ICT Use e by All Canadian Organizations 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 20

Be the most friendly nation in the world for IT-driven business model disruption 21

Reduce SME Preferences, Exemptions and Subsidies  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. Source; Statistics Canada 22

www.globalinnovationrace.com 23

Thank You Robert D. Atkinson ratkinson@itif.org Follow ITIF www.itif.org @RobAtkinsonITIF www.innovationfiles.org facebook.com/innovationpolicy www.youtube.com/techpolicy