Benefits for people
High-paying jobs
Resilient jobs
Educational achievement
Equitable digital services
Higher quality of life
Benefits for organizations
Greater productivity
Financial benefit
Organizational resilience
Broader consumer base
Enabling ecosystem
Benefits for Canada
World-class talent
Greater economic growth
Reduced health care costs
Digital technology is transforming all corners of life. The ability to access and effectively use it is now fundamental for employment, education, essential services, and social and cultural activities. With greater digital equity, all people living in Canada will be able to take full advantage of the digital world and enjoy the rewards, such as:
BENEFITS FOR PEOPLE
High-paying jobs Universal access to high-quality, affordable broadband can translate to increased income and wages as well as reduced unemployment rates. The United Nations’ International Telecommunication Union found that increased broadband adoption in rural areas in the United States positively (and potentially causally) affected income growth between 2001 and 2010, and reduced unemployment.13
Resilient jobs Canadians will be able to get—and keep—jobs that require digital skills, building resilience against workforce shifts. Statistics Canada research from 2011 to 2018 shows that the nature of work is changing as organizations incorporate automation technology into their workplaces.14 Digital upskilling will be vital as workers adapt to these shifts in the job market. Boston University research shows that the impacts of automation and technology on unemployment disproportionally hurt lower-skilled workers and older workers, who find their skills don’t match the demands of today’s job market.15 If we can teach digital skills from a younger age and make lifelong learning the norm, Canadian workers will be more adaptable to work that’s constantly evolving.
Educational achievement Research also shows that widespread access to broadband and internet-enabled devices can improve academic outcomes for students. For instance, a 2018 OECD study found a strong positive link between the number of school computers available to 15-year-old students and mean reading-performance scores in all participating countries, even after accounting for GDP per capita.16 Differences in internet connectivity also accounted for 57% of the differences in mean reading performance across all countries.
Equitable digital services The importance of digital skills and competencies for accessing everyday services also cannot be overstated. In conjunction with more widespread digital access, increased digital skills should allow all people in Canada to access virtual health services, benefit from the convenience of e-commerce, participate in digital civic engagement, and use online government services. A more digitally equitable ecosystem will also ensure that people can access these services safely, through better protection of their personal data and privacy, an online environment that is trusted and secure, and a system that ensures algorithms are ethical and human-centred.
Higher quality of life Empowering people to participate in a safer, more inclusive digital ecosystem will lead to a higher quality of life and greater well-being for countless Canadians. For example, a study of Canadians aged 60 and over found that internet use was correlated with improved measures of well-being, including higher levels of life satisfaction, self-efficacy, and social support, and lower levels of loneliness and depression.17
The digital world can also enable greater community connections and cultural preservation. For instance, videoconferencing has provided an opportunity for Indigenous elders in the Atlantic provinces, Ontario, and Saskatchewan to communicate with each other in their own languages. For some elders in the Atlantic region, this is the only time they can speak Mi’kmaq because there are no other native speakers in their physical communities.18 Elders are also using video to record their stories and wisdom for future generations, which can then be shared through Indigenous websites or social media.
The ability to participate and succeed in the digital world has become essential for organizations across all sectors. This has been reinforced by pandemic-related restrictions, when many organizations were forced to either quickly adapt to virtual or contactless business models or, in many provinces, brace for a lengthy shutdown. With greater digital equity, they can be more competitive, productive, and resilient in future crises.
BENEFITS FOR ORGANIZATIONS
Greater productivity Improving digital equity for organizations of all sizes will boost overall industrial productivity. One OECD study, for example, found that a 10 percentage-point increase in the use of high-speed broadband internet at the industry level was linked to a 1.4% increase in multi-factor productivity for the average company in that industry after one year and 3.9% after three years.19 Statistics Canada also found that, from 2002 to 2019, labour productivity grew 22.1% in digitally intensive sectors—more than three times that of non-digitally intensive sectors.20
Financial benefit Numerous studies have revealed a link between business investment in digital technology and financial benefit. Deloitte US research found that half of organizations with a high digital maturity reported net profit margins and revenues that were significantly above their industry’s average.21 A 2018 Brookfield Institute study similarly found that digitally mature Canadian businesses were 62% more likely than their peers to have high sales growth and 52% more likely to have high profits, though the study notes that more research is needed to determine causality.22 For governments, digital transformation offers a similarly compelling financial benefit. Deloitte research in Australia, for example, found that if the national government digitized just 20% more of its transactions over 10 years, it would gain about AU$17.9 billion (in real terms) from productivity and efficiency increases.23
Organizational resilience As the pandemic has shown us, digitalization can help organizations adapt to changing conditions and maintain operations in difficult or unusual circumstances.24 Small and medium-sized businesses (SMEs) that were able to pivot to digital commerce both performed better than their peers and were more optimistic about their future success.25 An MIT Technology Review report found that digital leaders (businesses that have fully implemented digital transformation projects) in North America all reported their pandemic recovery plans were effective—and 40% said they were very effective.26 These businesses had invested in technologies that boosted their resilience before the pandemic, allowing them to adapt to the crisis.
Broader consumer base If more people have the digital skills and comfort needed to participate in the digital economy, there will likely be a larger and more connected consumer base for many offerings, including e-commerce, virtual health, and digital entertainment. We’ve seen the financial benefit to e-commerce businesses during the pandemic, as Canada’s retail e-commerce sales reached a record $3.9 billion in May 2020 alone—more than double May 2019 levels.27 As more consumers move online, businesses that are able to adapt to digital business models will grow.
Non-profit organizations can similarly reach more people through digital transformation. In a recent Canadian survey, non-profit leaders indicated that digital tools allow them to reach new donors and volunteers, improve communications among current supporters, and reach more beneficiaries.28
Enabling ecosystem Benefits can also accrue through competition policy that levels the playing field for SMEs, data policies that enable more effective data-sharing between businesses, and policies that incentivize and remove barriers to digitalization. Deloitte research found that 83% of Canadian business leaders supported government policies that ensure the security of digital data, while 70% supported policies that increase the availability and usage of public data.29
Greater digital equity for its people and organizations will have profound positive impacts for Canada. It will make economic growth fairer and more equitable, boost resilience for future crises, and increase international competitiveness. Crucially, it will also strengthen the country’s voice in shaping the global digital world. With an economy that rewards inclusive innovation, digital investment and upskilling, and data protection, Canada will be able to lead the world in equitable growth.
BENEFITS FOR CANADA
World-class talent Progress on digital skills and participation will mean an even greater competitive advantage in talent. While Canada has a highly skilled workforce, a 2018 survey found that 41% of employers here face a skills shortage.30 In 2016, the Conference Board of Canada estimated that Ontario lost $24 billion due to skills deficits, which implies a $65 billion loss in the total national economy.31 If Canadian workers can close this gap by developing both digital and non-digital skills, it will future-proof the workforce and strengthen the economy.
Greater economic growth A 2020 survey also found that greater digitalization of small businesses in Canada could add $70 billion to the country’s GDP by 2024.32 Our past research backs this up: if companies increased their investment in digital technology and software by $6.4 billion, as part of a general increase in business investment to the OECD average, GDP growth could increase by up to 0.4%.33 Improving access to broadband for people will also economically benefit Canada, with multiple studies showing that an increase in broadband yields an increase in GDP growth across economies of all sizes.34
Reduced health care costs A vision for a thriving Canada in 2030 found that, unless we take action now, health care costs will grow by 1.7% by 2030, forcing governments to increase taxes or reduce spending.35 With greater digital literacy and access to broadband internet, however, more people can take advantage of virtual health care, which studies show can save costs and reduce hospitalizations by monitoring patients remotely.36
