This document sets out a plan to develop a partnership among government, business, and all Canadians to achieve new social & economic benefits through innovation. The introduction reviews the importance of innovation & the knowledge economy. Section 2 assesses Canada's innovation performance and the factors affecting innovation outcomes. Section 3 reviews government programs that supported innovation from 1995 to 2001. Sections 4 to 7 elaborate on Canada's innovation challenge and proposes goals, targets, and federal priorities in the areas of knowledge performance, skills development, and improving the innovation environment. Section 8 proposes development of innovation in technology clusters and in smaller communities. Section 9 is a call to action for federal partners in business, provincial/territorial government, and higher education. The final section outlines next steps in the national innovation strategy. The appendix includes an overview of innovation strategies in other countries.

Services industries account for almost three-quarters of both gross domestic product and employment in Canada, a trend that Canada shares with other G-7 countries. Furthermore, the services sector has been responsible for most of Canada's employment creation and much of its productivity growth over the past decade and the sector's importance to the Canadian economy continues to increase. Thirty renowned experts contribute to this volume, which is aimed at better understanding the dynamics of Canadian services industries and identifying the types of policies most likely to improve their innovation and productivity performance.

The first chapter of this document looks briefly at some of the factors underlying recent patterns of foreign investment. The next chapter of the paper discusses Industry Canada (IC) research that pertains to the role of foreign direct investment and the factors underlying recent investment trends. Chapter 3 considers the policy implications of the IC research in the context of Canada's role as both a significant host and an important source of foreign investment. In addition to examining the need for government intervention in foreign investment markets, this section considers the implications of the studies' findings for general government policy. Chapter 4 looks at foreign investment policy in an international context. The IC studies that examine foreign investment barriers and that have something to say about how to improve the international environment for foreign investment are discussed in this section. The paper's conclusions are presented in chapter 5.

This paper assesses the impact of the Canada-US Free Trade Agreement (FTA) on Canadian manufacturing during the 1989-1996 period. The estimated effects of the tariff concessions are calculated for manufacturing as a whole as well as for the most impacted industries (those industries faced with the largest tariff cuts). The paper examines impacts on a number of performance indicators, including employment, earnings, trade, output, number of plants, and productivity.

This study focuses on regulatory and standard-related barriers to trade, examining the European approach to reducing such barriers with a view to inform and perhaps improve Canadian initiatives. The study first reviews the program and institutions adopted by the European Union to remove regulatory barriers to trade, as well as basic principles related to trade barrier reduction. Harmonization of national regulations and standards, enforcement and dispute resolution procedures, and the effectiveness of European Commission policies to reduce regulatory barriers are discussed. The study then analyzes the relevance of European approaches to Canadian attempts to promote freer movement of products and services within Canada. Finally, actions are recommended to strengthen the trade liberalization process in Canada.

This paper presents the broad outline and first stages of a plan of action to build a more innovative economy in Canada. The government's agenda for jobs and growth provides for a comprehensive series of practical initiatives to give our economy more strength and staying power. The plan focuses on four key areas: marketplace climate, trade, infrastructure, and technology. It calls looks at partnerships among all Canadians and their institutions - businesses, unions, professional associations, interest groups, governments - and examines job creation and growth in the private sector. More precisely, topics covered are: broad objectives; the challenge; principles and approach of building a more innovative economy; marketplace climate; and, expanding markets for jobs and growth.