Canada's prosperity depends on its ability to innovate and commercialize new
discoveries A sound social agenda must be supported with a sound economic
agenda, says RBC's Nixon
"Achieving
Canada's potential in the 21st century" EDMONTON,
November 2, 2004 - Gordon M. Nixon, President and CEO of RBC Financial
Group today called on Canada's politicians, business leaders, labour leaders,
and academics to work together to address the challenges of an increasingly competitive
world marked by rapid advances in science, technology and other knowledge-based
industries. Mr. Nixon, who was speaking at the Alberta School of Business's
2004 Princeton Developments Distinguished Lecture in Finance, told his audience
that science and technology is driving global economies as never before, and to
keep up Canada will need to support and encourage greater innovation and entrepreneurship. His
speech, titled "Achieving Canada's Potential in the 21st Century" stressed
that to meet the Government of Canada's goal of going from the fourteenth to the
fifth most research-intensive nation in the world by 2010, Canada will need to
find its own business niches quickly because the rest of the world is moving forward
rapidly. This is especially important if Canada is to maintain a high standard
living, with good jobs and healthy communities. As the emerging market economies
become wealthier and more successful, they will also become markets for unique,
high value goods and services -and these are the kind of areas where Canada must
focus its efforts. "Advances in science and technology along with the
decision of such countries as China, India, and Brazil to join the economic global
system, have set the stage for a new global economy," said Nixon. "The
world around us is undergoing profound change, and the stakes are incredibly high
for every Canadian." In his speech, Nixon cited three key ways for
Canada's economy to grow and prosper. The first is to invest in training managers
who can actually create commercial success from new knowledge and by investing
in advanced production technologies; the second is to pursue international markets
through foreign trade and investment, identifying and specializing in those things
we do best; and the third is to promote and stimulate innovation and entrepreneurship. Nixon
stated that Canada's tax system requires reform in order to create better incentives
to investment and growth. He also said new approaches by financial institutions
and business leaders are needed, but that Canada had a sound base to build upon. "Today,
Canada has so much going for it," said Nixon. "We have an abundance
of natural resources. We have the only budgetary surplus in the G7. Our ratio
of net debt to Gross Domestic Product is among the best in the OECD. Our immigration
polices enable us to attract valuable human capital. And Canada has a reputation
as one of the best places in the world to live and do business." Nixon
used the example of Western Canada's as a leading centre of science and technology
that has the potential to sustain growth and create new opportunities. "In
effect, a new West is emerging as a key force in building Canada's knowledge economy
of the future," he said. "While the history of economic development
in Western Canada has been tied to natural resources -- especially energy in Alberta
-- the resource economy has always depended on science, technology and engineering." While
Nixon noted that there are hopeful signs that Canada is beginning to respond to
challenges of the knowledge-based economy of the 21st century, he also raised
the question of how we can connect this new knowledge into jobs and business. "A
good social agenda can only be implemented in conjunction with a sound economic
agenda," said Nixon. "This is a reality we ignore too often. If we want
the world's best healthcare system and the most attractive cities, then we need
to become one of the world's most competitive nations in order to pay for it.
This requires focus, coordination, and investment. And it requires the commitment
of all constituents." The Princeton Developments Distinguished Lecture
in Finance is sponsored by Princeton Developments Ltd., the Alberta School of
Business, and by the Stephen A. Jarislowsky Distinguished Chair in Finance. A
copy of the full speech is available for reprint at www.rbc.com/newsroom. About
RBC Financial Group
Royal Bank of Canada (RY: TSX, NYSE) uses the initials
RBC as a prefix for its businesses and operating subsidiaries, which operate under
the master brand name of RBC Financial Group. Royal Bank of Canada is Canada's
largest bank as measured by market capitalization and assets, and is one of North
America's leading diversified financial services companies. It provides personal
and commercial banking, wealth management services, insurance, corporate and investment
banking, and transaction processing services on a global basis. The company employs
60,000 people who serve more than 12 million personal, business and public sector
clients through offices in North America and some 30 countries around the world.
For more information, please visit www.rbc.com.
-
30 -
Media contact:
Judi Levita, (416) 974-8810
| 
