Elbows up and all hands in: fixing Canada’s productivity problem using universities

Canada has a productivity problem. We are not keeping up with other countries, particularly the United States, our largest trading partner. We are at risk of falling further behind as the global economy is upended by the U.S. focus on growing its own domestic manufacturing and technology industries through subsidies, tariffs and reshoring initiatives. 

“Elbows Up” may be a good slogan for an adrenaline rush. However, if we fail to turn this period of adversity into a long-term advantage, the economic impact to our country will be felt by generations to come. We require a bolder, integrated strategy involving governments, industries, and our world-class universities that attract and develop top talent. 

First, Canada needs a more tech-savvy workforce, which means training more people in artificial intelligence, data science, and other advanced skills. One of Canada’s greatest weaknesses is that businesses are slow to adopt AI, automation and cloud-based systems, not due to lack of awareness but because they do not have enough skilled workers to use and leverage these tools. We know what we must do, but not how – universities as partners is an answer. 

The Vector Institute’s 2024 report on emerging AI skills identifies a pressing need for workers with specialized expertise in areas such as machine learning, data engineering and cybersecurity. Digital literacy needs to be a core skill for students at all educational levels, from K-12 and throughout higher education. Industries should be involved in developing curriculums and offering real-world learning opportunities. In today’s economy, we do not just need more people who can write code, we need people who can understand the societal implications of AI, who can design ethical business models, who communicate across sectors, who can connect insights from science and the humanities into solutions. That is what a university education, done right, is built for.  

We need to broaden our definition of “tech-savvy” so that students and workers can use technology effectively. Humanities, critical thinking and analytical writing skills need to be integrated into tech training to solve the big problems of today and tomorrow.  

Secondly, our universities and industries need to collaborate in areas where Canada has an advantage: critical minerals, the Arctic economy, foreign policy, AI, agrifood, aerospace and clean energy, all come to mind. But above all we need to remember that we are a knowledge-based economy. We must build partnerships that help students gain practical experience and access new ideas. In other countries such as Germany and South Korea, schools and industries work seamlessly to turn research into real-world solutions and drive commercialization. Canada’s postsecondary institutions can do more to break out of our silos.  

Encouragingly, new models – beyond internships – are emerging. The University of Ottawa’s CloudCampus, launched in partnership with the Bell Canada company FX Innovation and CENGN (Canada’s Centre of Excellence in Next Generation Networks), offers graduate training in building cloud systems and retraining opportunities for mid-career professionals. The Creative Destruction Lab, founded at the University of Toronto and now operating at 12 sites around the world, is a global startup program for science-based companies looking for initial funding. At Victoria University, the Centre for Creativity convenes business, academic and creative industry thinkers to find answers to specific questions together. 

Canadian universities can and should lead the way in creating more of these partnerships. With their research capacity, teaching talent and deep community networks, they are uniquely positioned to build bridges between innovation and implementation. Where else in society can you find such deep and broad expertise in one place: scientists, engineers, artists, historians, ethicists, and economics, for example, all working side by side? This diversity of knowledge and perspective is the value universities bring to the table and which will be critical to solving today’s most complex challenges. 

Thirdly, government support is vital. Canada must create a culture where innovation is not just fostered, but expected, both in classrooms and board rooms. Tax incentives, matching grants and streamlined funding applications can encourage more businesses to invest in collaborative research and development.  

Unless Canada modernizes its productivity strategy, we risk long-term economic stagnation. But if we can better connect education, industry and research, we will not only catch up with other economies but also create a stronger, more competitive future. It’s time to get our elbows up and all hands in — rolling up our sleeves not just to work hard, but to translate that work into building a strong, resilient economy for everyone.