1. The future of productivityThe innovators time is nowMay 22nd, 2013

2. Deloitte LLP and affiliated entities.Future of Productivity 3. Deloitte LLP and affiliated entities.Productivity is the most significant threat to Canadasstandard of livingEmployment rate% of total populationthat is employedHoursWorkerOutputHourGDPPopulationX Work effort X Productivity = Standard of livingSources: Centre for the Study of Living Standards, OECD2010$59.28$46.212010$59.28$46.21$13/hr 4. Deloitte LLP and affiliated entities.Canadas economic composition by size and sector isnot a key driver of slow productivity growthSource: Statistics Canada, Industry Canada, U.S. Bureau of Labor Statistics, Deloitte AnalysisSize doesnt matter Contribution to CanadaU.S. productivity gap 2009U.S.Canada$59.28$46.21Impact of productivity within eachfirm size (98% of productivity gap)$12.81Impact of firm size distribution(2% of productivity gap)$0.26 5. Deloitte LLP and affiliated entities.Canadas economic composition by size and sector isnot a key driver of slow productivity growthSource: Statistics Canada, Industry Canada, U.S. Bureau of Labor Statistics, Deloitte AnalysisCanadaU.S. productivity growth gap 1987-2008U.S.Canada1.88%1.04%Sector compositiondoesnt matter eitherSize doesnt matterIn-sector productivity 88.3%Sector composition 5.4%Residual 6.3% 6. Deloitte LLP and affiliated entities.Growth is the deceptively simple solution to productivity but Canadian firms find growth hard to sustainGrowth in services firms, 2005-2007Young firms (5 years old)Percentage of high growth firms by countryU.S.Norway(2006)SwedenIsrael(2008)Canada Netherlands SpainNote: High growth firms are defined as firms with 20%+ annualized employment growth over a 3 year period. Scope of firms is limited tothose with 10-250 employees with $30K-$50M revenues in the first year of the period. Similar trend is observed in manufacturing firms. 8. Deloitte LLP and affiliated entities.Canadian businesses lose momentum for multiple reasonsLow risktoleranceLowcompetitiveintensityPoor tradeactivityWeakinvestment 9. Deloitte LLP and affiliated entities.Canadian businesses lose momentum for multiple reasonsA national strategy for globalcompetitiveness is imperative tosolve Canadas productivity challenge 10. Deloitte LLP and affiliated entities.The future of productivity: clear choices for a competitive Canadareport presents specific, detailed recommendations to resetCanadas productivity trajectoryBusinesses GovernmentAcademiaCurriculumCommercializeTradeImmigrationGrowthFDIDecision-makingReinventionClustersInvestmentTalentTrade 11. Deloitte LLP and affiliated entities.lululemonInnovation with customers Living design thinking 12. Deloitte LLP and affiliated entities.Canada GooseExtreme Canadian manufacturingGo to "Insert" tab in Ribbon to insert Header & Footer 13. Deloitte LLP and affiliated entities.VenmarBreathing easy through innovation 14. Deloitte LLP and affiliated entities.ReconBringing information to people when they need it 15. Deloitte LLP and affiliated entities.ReconContinuing to deliver innovation 16. Deloitte LLP and affiliated entities.Ocean Nutrition CanadaHomegrown innovation Healthier world 17. Deloitte LLP and affiliated entities.BlueLight AnalyticsTaking university IP to the market 18. Deloitte LLP and affiliated entities.The time to act on innovation is nowConnect withCanadianincubators andaccelerators 19. Deloitte LLP and affiliated entities.The time to act on innovation is nowSupportentrepreneurshipand innovationin Canadaseducationalsystem 20. Deloitte LLP and affiliated entities.The time to act on innovation is nowTake a freshapproach toproduct and servicedevelopmentexploreDesignThinking 21. Deloitte LLP and affiliated entities.The time to act on innovation is nowBuild outyourinnovationecosystem 22. Deloitte LLP and affiliated entities.The time to act on innovation is nowActivelymanage yourinnovationprogram 23. Deloitte LLP and affiliated entities.Terry StuartChief Innovation OfficerDeloitte Canadatestuart@deloitte.ca 24. Deloitte LLP and affiliated entities.Lets discussWhat challenges/barriers doesyour organization face whendeveloping an innovation culture?What are actions you, as abusiness leader, can take topromote an innovation culture inyour organization and in ourcommunity?What are our future opportunitiesfor developing an innovationculture in our community collaboration, working withuniversities, etc.?#1#2#3