^^ The American market is important to us, but it has more barriers for Canadians than for Americans, and the small Canadian markets are divided among themselves.
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... there is greater proximity to a larger number of major cities in the US than in Canada—which could have some synergies for innovation—this factor has not been extensively researched to date.
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I believe geography has much to do with it (economies of scale are important), but some also attribute the cause to a number of factors coming together (of course); such as Canadians working fewer hours. Not much is attributed to tax differences, but lack of innovation, research, and investment are seen as factors; also the brain drain of our most educated to the South.
https://businesscouncilab.com/insigh...ductivity-gap/
Could our national ideology (as such) be a contributing factor, making Canadians lazy? Perhaps the protestant work ethic was thrown out long ago with the religion itself. Everyone I've known assumes paid sick days when not even sick are an entitlement and a given. Is that the same in other countries?