When complementary innovations such as those in organizational structure and in human resource management practices are considered, the picture is somewhat worse. Small firms were only half as likely as larger ones to have introduced product or process innovation. Furthermore, smaller firms were much less likely to introduce process innovations. Canadian patenting activity lags behind that of the U.S. by as much as a half. Canada leads the U.S. in the proportion of the work force with some post-secondary training, but lags in the proportion of university degrees.
Recent information suggests that some gaps appear to be getting smaller.
For example, Canada is now tied with the United States in the proportion of graduates receiving degrees in natural sciences, mathematics, computer science, engineering and architecture. However, the rate of change is slow and it is not clear why these gaps are narrowing. To sum up, depending on the measures used, various gaps emerge between Canada and one or more trading partners. Careful interpretation of available information is essential.