From Necessity Springs Innovation: Now’s the Time to Reimagine “Prosperity for all Canadians”

The last few years have been an incredibly turbulent time for Canadians. The impact of high inflation rates and the increasing cost of living have shifted societal values; Canadians’ traditional idea of ‘prosperity’ is undergoing a profound transformation as a result. This transformation is also driven by intergenerational concerns, particularly from Gen-Zs who are facing an affordability crisis, notably in housing and economic opportunities.

Prosperity, once defined by GDP growth and job creation, is now being redefined by quality of life, mental and physical wellbeing, and personal relationships, on top of financial health. But do economists and business leaders understand Canadian workers’ evolving definition of personal prosperity and whether employers offering a viable path to achieving it is a likely driver of productivity?

A New Understanding of Prosperity

According to Mastercard research in 2024, nearly half of Canadians now equate prosperity with health and wellness, underscoring a fundamental shift in values. This shift calls for a rebalancing of corporate and employee values, which comes at a critical juncture that impacts our ability to sustain traditional economic growth models.

Throughout my conversations with Canadian leaders on my Future Forward series, a recurring theme emerged: what worked in the past will not work in the future economy.  In particular, Canada’s productivity levels—currently at just 71% of that of the US—highlight our lagging ability to turn education and innovation into economic output.

This concern was raised by both the Honourable Lisa Raitt and the Honourable Anne McLellan during the final episode of the series, where they emphasized that our country’s economic fragility must be addressed now.

Our path to future prosperity hinges on a bold vision: one where innovation and inclusivity are at the forefront, driven by a dynamic partnership between private corporations and the public sector. It is not merely advantageous—it is imperative. By leveraging the strengths of both sectors, we can drive meaningful change and ensure a prosperous future for all Canadians.

As McLellan emphasized, Canada’s fragmented policies, such as interprovincial trade barriers, are impeding our growth potential. Removing these barriers could increase the GDP by billions. Aligning our efforts can amplify impact and drive systemic change that benefits communities across Canada.  

Supporting Canadian Risk-Takers

However, to ensure we are at the forefront of inclusive innovations, we must prioritize support for risk-takers. This includes entrepreneurs and small and mid-size businesses that make up 98% of Canada’s economy. As we pointed out in the latest Future Forward episode, Canada’s AI adoption rate stands at just 30%, compared to 45% in the US. This gap is a direct result of our risk-averse culture, which McLellan attributed to fear—fear of adopting new technologies and the changes they bring.

A great example of Canada’s innovative mindset is the recent Nobel Prize win for University of Toronto professor emeritus Geoffrey Hinton, who helped lay the foundations for artificial intelligence. Yet, we still lag behind global peers like the UK and Australia in implementing AI at scale. As a next step, we must ensure corporations and governments are rewarding risk-takers who adopt new technologies to help their businesses thrive.

By embracing technological advancements and fostering a culture of creativity, businesses can propel Canada towards a more sustainable and inclusive economy. We also need to harness intergenerational knowledge within our workforce. Creating pathways for younger employees to lead AI implementation within organizations while ensuring they are valued and retained will be key to unlocking this potential.

Another key takeaway from the Future Forward series is the necessity of inclusive voices from underserved communities at the decision-making table to help shape both technology and the future Canadian economy. This aligns with the Honourable Mary Ng’s comments on how partnerships between the federal government, private corporations and academic institutions are already empowering Black and Indigenous business owners to expand and digitize their ventures, ensuring Canada’s digital economy includes all communities.

As leaders in the private and public sectors, we have a responsibility to rise to the occasion, lead by example and demonstrate through action how we can redefine success to ensure that every Canadian thrives. We must adapt to these evolving definitions of prosperity and actively contribute to shaping them. We need a proactive approach, measuring success by our ability to enhance societal resilience and foster inclusive growth, not just by financial metrics.

Partnerships for Prosperity

At Mastercard, we are committed to leveraging our technology and payment capabilities for the greater good, helping increase inclusivity and accelerating technological advancements in underserved communities. Our strategic partnerships, programs and initiatives, such as with Pow Wow Pitch, Girls4Tech and ACTUA, are designed to increase inclusivity in technology. They provide traditionally underrepresented groups with much-needed resources to help enhance digital adoption and entrepreneurship, ultimately paving the way for these communities to become leaders in our future economy.

Many private corporations across Canada are innovating and have readily available access to the resources required to build a more innovative and inclusive future economy. However, as McLellan and Raitt stressed, businesses must also focus on long-term national prosperity. Raitt’s call for businesses to “be patriotic” and prioritize Canada’s interests above short-term gains is critical to ensuring our collective success.

Together, by embracing innovation and inclusion, we can forge a future where every Canadian has the opportunity to thrive. It is not just a vision but a shared responsibility—one that will define our legacy and shape Canada’s future digital economy for generations to come.