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capabilities. The people who built the factories to make semi- conductors used that knowledge to build factories to make flat- panel displays.” That’s why companies such as Samsung and LG totally dominate that industry today. Luckily, the US retains a strong R&D capacity, according to an


OECD study. From 2000 to 2009, R&D intensity grew to 2.9% of GDP from 2.71%. However, capacity in China skyrocketed to 1.77% of GDP from 0.9%, a 20% yearly increase. In Canada, R&D numbers are taking an ominous turn. According to Statistics Canada R&D reached 2.01% of GDP in 2004. In 2012, that percentage had sunk to 1.71%.


A call to arms In the US, there is a strong impetus for revitalizing manufactur- ing, starting at the highest level with President Obama pro- nouncing the word “manufacturing” 15 times in his 2012 State of the Union address, says Duhamel. In Canada, such an impetus can’t be found. Politicians don’t


speak about it. Academia is still entrenched in the postindus- trial mind-set. “We need a call to arms,” says Simpson. “Canada is languishing.” A McKinsey Global Institute study shows that, among the top 15 manufacturing countries by share of global nominal manufacturing gross value added, Canada slowly slipped from 10th place in 1990 to 15th in 2010. It now stands behind countries such as Brazil, Indonesia, even Mexico. Of the many fronts Canada needs to work on, three stand


out, according to Howcroſt: productivity, government regula- tion and skills. For years, commentators have been pointing out Canada’s weak productivity performance, heavy regulatory framework and technical skills shortage. Unfortunately, these specific debates are not taking place as part of a move to revive


In the US, there is a strong impetus for revitalizing manufacturing, starting at the highest level. In Canada, such an impetus can’t be found


manufacturing. The postindustrial era has been one of the most troubled in modern economic history, with the economy repeatedly impacted by financial shocks in 1987, 1997, 2000 and 2008. Perhaps it was a gamble not worth taking.


YAN BARCELO is a Montreal-area writer


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