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Talented, Educated and Entrepreneurial People

Introduction

This reference document is intended to provide supplementary information relating to "talented, educated, and entrepreneurial people," one of the four key inputs to business innovation discussed in Section 2 of the Panel's Consultation Paper. The other three inputs are: (1) ideas and knowledge; (2) networks, collaborations, and linkages; and (3) capital and financing. Federal support for business R&D takes the form of specific initiatives that help businesses develop or access each input. As such, understanding the larger Canadian context for each input is essential to examining the role and effectiveness of the initiatives at the core of this Review.

Supplementary Information

The following key facts build on topics covered in the portion of the Panel's discussion paper pertaining to talented, educated, and entrepreneurial people:

  • Canada is first in the OECD for graduation rates at the college level.

    Source: OECD (2010), Education at a Glance 2010. The reference year is 2008, except for Australia and Canada (2007).
  • Canada is about average in the OECD for graduation rates at the bachelor's level.

    Source: OECD (2010), Education at a Glance 2010. The reference year is 2008, except for Australia and Canada (2007).
  • Canada is below average in the OECD for graduation rates at the master's level.

    Source: OECD (2010), Education at a Glance 2010. The reference year is 2008, except for Australia and Canada (2007).
  • Canada is below average in the OECD for graduation rates at the doctoral level.

    Source: OECD (2010), Education at a Glance 2010. The reference year is 2008, except for Australia and Canada (2007).
  • In terms of earnings, postsecondary education is rewarded more in the US than in Canada. The below table depicts the earnings advantage, relative to high school graduates, of individuals with postsecondary education in Canada and the US.

    Source: Institute for Competitiveness & Prosperity (2010), Beyond the Recovery: Report Card on Canada 2010.
  • In a 2006 report, Canadian Manufacturers and Exporters (CME), Canada's largest industry and trade association, presented the findings of a thorough survey of its membership. The survey explored a variety of management issues, including the level of satisfaction with education and training programs in meeting skills requirements, as presented in the following two tables.

    Level of satisfaction with education and training programs in meeting skills requirements, by annual sales (Percent of companies reporting satisfactory, effective, or very effective)
    Source: Canadian Manufacturers and Exporters (2006), The Future of Manufacturing in Canada: Perspectives and Recommendations on Workforce Capabilities
      Canada Less than $10  M $10  M to $50  M $50  M to $200  M Over $200  M
    High schools 47% 41% 54% 62% 41%
    Colleges 61% 54% 63% 78% 67%
    University graduate programs 50% 40% 66% 69% 67%
    University post-graduate programs 32% 21% 28% 54% 67%
    Apprenticeships 51% 41% 59% 67% 59%
    External training programs 46% 36% 53% 59% 67%
    Immigration service 10% 11% 9% 10% 7%
    On-line learning 18% 17% 16% 18% 33%
    Professional training programs 42% 33% 49% 54% 63%
    Collaborative training programs 22% 20% 19% 28% 30%
    Internal training 65% 60% 63% 79% 74%

    Level of satisfaction with education and training programs in meeting skills requirements, by number of employees (Percent of companies reporting satisfactory, effective, or very effective)
    Source: Canadian Manufacturers and Exporters (2006), The Future of Manufacturing in Canada: Perspectives and Recommendations on Workforce Capabilities.
    Canada 1 to 10 11 to 50 51 to 200 201 to 500 Over 500
    High schools 47% 31% 40% 62% 56% 45%
    Colleges 61% 43% 57% 66% 74% 78%
    University graduate programs 50% 33% 41% 58% 65% 69%
    University post-graduate programs 32% 23% 21% 29% 44% 72%
    Apprenticeships 51% 38% 38% 61% 56% 72%
    External training programs 46% 30% 40% 53% 53% 69%
    Immigration service 10% 13% 10% 6% 12% 7%
    On-line learning 18% 16% 17% 17% 18% 28%
    Professional training programs 42% 23% 35% 51% 53% 66%
    Collaborative training programs 22% 20% 21% 19% 21% 34%
    Internal training 65% 41% 69% 70% 65% 83%
  • University education is more prevalent among managers in the US than in Canada. Among managers with university degrees, the US has a higher proportion of managers with advanced degrees. The below graph depicts the percentage of university-educated managers by level of degree in Canada and the US.

    Source: Statistics Canada, 2006 Census, and US Census Bureau, Survey of Income and Program Participation, "What It's Worth 2004." The reference year for Canada is 2006 and the reference year for the US is 2004.
  • A comparative survey of Ontario and peer states in the US found that members of Ontario's business community place less value on university education than their US peers. The below graph depicts business community respondents' choice of advice on needed level of education.

    Source: Institute for Competitiveness and Prosperity (2003), Striking Similarities: Attitudes and Ontario's Prosperity Gap (Working Paper no. 4).
  • Canada's proportion of researchers in total employment is slightly above the OECD average. The below graph depicts the number of researchers per thousand total employment, broken down by researchers active in the business sector versus those active in other sectors.

    Source: OECD (2009), Science, Technology and Industry Scoreboard 2009. The reference year is 2007, except where noted otherwise.
  • For the ten-year period beginning in 1997, Canada's average annual growth rate of business researchers ranked above the OECD average. The below graph depicts the average annual growth rate of business researchers for 1997-2007.

    Source: OECD (2009), Science, Technology and Industry Scoreboard 2009.
  • Canada places second in the OECD for expenditures on tertiary educational institutions as a proportion of GDP.

    Source: OECD (2010), Education at a Glance 2010. The reference year is 2007, except for Canada (2006) and Chile (2008).
  • In a 2010 OECD report, Canada placed fourth among a group of 19 countries for the incidence of innovation-related training in innovative firms. The below graph depicts the number of firms (expressed as a proportion of total innovative firms) engaged in innovation-related training activities for the 2004-06 period.

    Source: OECD (2010), Measuring Innovation: A New Perspective.