Applying the diamond in a Canadian context
1. Natural resources are a good source of wealth if they finance and support productivity growth and firms become more sophisticated but they can become complacent instead - as they have in Canada
2, Domestic rivalry spurs innovation, Canada'a small, widespread market has not supported many rivals
3. Foreign investment takes the form of different types of companies:
- factor sourcing...buying resources and labour...home base is foreign
- market access...in Canada avoid Canadian tariffs...home base is foreign
- Home base/core activities - they make the greatest investment, have the best jobs, develop supporting industries. Canada has attracted too few. The challenge is to attract more of them, before free trade/globalization woos away market accessors and before factor sourcers find cheaper resources
4. The Canadian Diamond in International Competition. We must seek to improve the Canadian situation...one way to access sources of strength from the U.S. diamond (basic factors, demand are easiest; workforce and infrastructure require more investment to access) Also, by strengthening the Canadian diamond.
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