‘Productivity is shaped by how many policies interact — tax systems, trade rules, skills, infrastructure, regulation, and innovation. Without strong research, it’s hard to identify what works; without clear communication, it’s hard to build understanding and support for reform,’ says University of Calgary professor Trevor Tombe.

Canada’s productivity challenge sits at the centre of many of the country’s most pressing economic concerns — from affordability and wage growth to competitiveness and fiscal sustainability. Yet productivity is often discussed in abstract terms, making it difficult to connect research, policy and everyday life.

With a 15-year, $6-million investment from the Social Sciences and Humanities Research Council, the University of Calgary is leading a national research partnership — Canada’s Productivity Initiative — to bridge that gap. Led by Trevor Tombe, an economics professor at the University of Calgary and the Director of Fiscal and Economic Policy at the School of Public Policy, the initiative brings together more than 30 researchers, federal departments, universities and policy organizations across the country to generate evidence-based solutions and translate them into practical insights for decision-makers.

In this Q&A, Tombe discusses how the initiative will turn world-class research into actionable policy and why Canada’s productivity challenge is so difficult to solve.

M&W: You said in the press release announcing the $6 million investment that “This partnership is about turning world-class research into practical insight for decision-makers on a national scale.” Can you expand on that? How will this be achieved?

TT: This partnership is built on two pillars that reinforce each other: original research and knowledge mobilization. Rigorous, data-driven research generates new insight, while sustained engagement and clear communication ensure that insight informs real decisions — for policymakers and for the broader public.

M&W: How will this initiative be different from other public policy organizations thinking about these same issues?

TT: What distinguishes this initiative is its scale, time horizon, and balance. It combines long-run academic research with an explicit commitment to making that research understandable and usable, recognizing that evidence only has impact when it is both credible and accessible.

M&W: How will this affect Canadians? Do you think they are thinking about productivity like politicians and economists are?

TT: Canadians may not talk about productivity, but they live with its consequences through wages, affordability, and the quality of public services. By producing new evidence and improving how that evidence is shared, this initiative helps link policy choices to everyday economic outcomes.

M&W: You also said: “Productivity is at the heart of nearly every economic challenge Canada faces today — from affordability and trade competitiveness to the sustainability of our public finances.” Why is Canada's productivity challenge so difficult to solve?

TT: Productivity is shaped by how many policies interact — tax systems, trade rules, skills, infrastructure, regulation, and innovation. Without strong research, it’s hard to identify what works; without clear communication, it’s hard to build understanding and support for reform.

M&W: What is the role of the private sector and business leaders when it comes to productivity?

TT: Productivity gains ultimately occur inside firms, through investment, adoption of new technologies, and better organization of work. Businesses also provide essential real-world insight that helps researchers and policymakers understand where policy is helping — and where it is getting in the way.

M&W: The Prime Minister has said we're going through a rupture in our geopolitical and trade relationships. How do you see Canada's economy emerging from this rupture?

TT: Canada is likely to emerge from global disruptions with a stronger focus on resilience and diversification. Ensuring those adjustments raise, rather than lower, productivity will depend on good evidence and a shared understanding of the trade-offs involved in different policy choices.

M&W: What are you looking forward to in leading this initiative?

TT: What’s most exciting is building something that compounds over time — new research, better data, stronger policy engagement, and a more informed public conversation about productivity and living standards. It's rare that initiatives go for as long as this. It provides an opportunity for sustained incremental gains to really build significantly over time.

M&W: What's keeping you up at night?

TT: The risk is allowing weak productivity growth to persist quietly. Without ongoing efforts to identify and enact solutions and clear communication to explain why they matter, the costs to wages, affordability, and public finances become harder to reverse.