Question

One of key predictions of the Solow Growth Model is that growth in total factor productivity will ensure long run economic growth. While Canada has been making progress in terms of a growing technology sector due to many factors, some of which include: strong economic base and rising standard of living highly educated work force multi-cultural mix and friendly business environment universal health care foreign immigration policies friendly domestic immigration policy and foreign anti-immigration policies

Discuss some public policies that the federal government Canada can implement to boost Canada's technological progress.

Answer 1

                                    Technological progress is always important for the growth of an economy. The progress made in the technological sector depend on many factors such as the educational attainment in an economy, the economic base of a nation, the labour productivity of the nation etc. The implementation of various public policies could bring in the necessary improvements in technological progress of an economy and hence boost the technological sector of an economy. Considering the above facts, the following public policies could be implemented in Canada so as to boost the technological progress of Canada

· Subsidies and similar measures could be adopted so as to attract many to make innovative contributions to the technological sector

· Investment patterns in such sectors could be made simpler so that more investments could be attracted to technological sector

· Micro finance may be boosted for similar ventures so that all the sections of the society are included in contributing to the technological progress of the nation

· Canada is famous for the educational institutions and hence more opportunities may be provided to mix innovation and education by attaching various technological institutions with the educational institutions

· The labour contribution could be boosted by providing various incentives to the workers of technological sector

· The technological institutions could be brought under government supervision so that proper implementation of programs are followed in all of the industries.

· Budgetary allocations should be boosted so as to make sure that proper allocations are being set apart for the technological sector