VANCOUVER—Business investment in high-tech and innovative asset categories that are crucial to raise living standards has been significantly weaker in Canada than in the U.S. for the past 20 years, and the gap has grown larger since 2014, finds a new study published today by the Fraser Institute, an independent, non-partisan Canadian public policy think-tank.

“Not all business investment is created equal, and investments in machinery, equipment, and research and development, which improve worker productivity are major contributors to higher living standards,” said Steven Globerman, Fraser Institute senior fellow and author of The Weakness of Corporate Investment in Canada, 2001-2021: Identification and Assessment.