Roger L. Martin Ottawa, March 10, 2006

1. Roger L. MartinOttawa, March 10, 2006

2. The Institute for Competitiveness & Prosperity Mandate To measure and monitor Ontario’s competitiveness, productivity, and economic progress compared to other provinces and the US states and to report to the public on a regular basis.

3. Rebalancing Priorities For Canada’s Prosperity • Prosperity perspective 2006 • Continuing prosperity and productivity challenge • Rebalancing toward investment • Taxing smarter to motivate investment • Rebalancing market and governance structures • Recommendations for prosperity

4. Canada’s Economy Out Performs Most Others

5. Canada’s Prosperity Gap Has Widened

6. Stakeholders Can Consume Today and Invest for Future Prosperity

7. Investing Leads to Higher Prosperity

8. Consumption is the Benefit of Prior Investment

9. Rebalancing Priorities For Prosperity • Prosperity perspective 2006 • Continuing prosperity and productivity challenge • Rebalancing toward investment • Taxing smarter to motivate investment • Rebalancing market and governance structures • Recommendations for prosperity

10. Canada’s Productivity Gap is the Major Source of its Prosperity Gap

11. The Institute Assesses Measurable Elements of GDP Per Capita

12. Canada’s Demographic Profile Will Continue To Be An Advantage

13. Canada’s Participation Rate Has Rebounded

14. Canada’s Employment Rate Has Improved

15. Canada Has Higher Utilization Of Working Aged Population

16. Canada Has A Persistent Gap In Hours Worked

17. Lower Productivity Drives Canada’s Prosperity Gap with US

18. Urbanization Drives Productivity

19. Rebalancing Priorities For Prosperity • Prosperity perspective 2006 • Continuing prosperity and productivity challenge • Rebalancing toward investment • Taxing smarter to motivate investment • Rebalancing market and governance structures • Recommendations for prosperity

20. AIMS Drives Prosperity; Prosperity Drives AIMS

21. Ontarians Have Positive Attitudes Toward Competition and Prosperity

22. Canada’s Businesses Continue to Under Invest

23. Governments Shifted from Investment to Consumption

24. Canadians Under Invest in Post Secondary Education

25. Canada Trails in Degrees Conferred

26. Higher Education Leads to Higher Economic Returns

27. Rebalancing Priorities For Prosperity • Prosperity perspective 2006 • Continuing prosperity and productivity challenge • Rebalancing toward investment • Taxing smarter to motivate investment • Rebalancing market and governance structures • Recommendations for prosperity

28. Some Taxes are Smarter than Others

29. Canada Has High Taxes on Business Investment

30. Rebalancing Priorities For Prosperity • Prosperity perspective 2006 • Continuing prosperity and productivity challenge • Rebalancing toward investment • Taxing smarter to motivate investment • Rebalancing market and governance structures • Recommendations for prosperity

31. Effective Innovation System Has Pressure and Support Across 3 Components

32. Canada Trails Significantly in Business R&D

33. Venture Capital Experience in Canada Close to US

34. Canada’s Venture Capital Returns Have Been Weak

35. Canadian Start-ups Have Weak Access to Management Talent

36. Canada Trails in Business Degrees Conferred

37. Fiscal Federalism Has Narrowed Regional Income Gaps More in Canada than US

38. Regional Gaps in GDP Higher in Canada than US and Not Closing Faster

39. Rebalancing Priorities For Prosperity • Prosperity perspective 2006 • Continuing prosperity and productivity challenge • Rebalancing toward investment • Taxing smarter to motivate investment • Rebalancing market and governance structures • Recommendations for prosperity

40. Canadians Need to Choose a New Path for Prosperity

41. Roger L. MartinOttawa, March 10, 2006