Beyond machinery and buildings
Canada’s productivity challenge is increasingly intangible. While physical investment has stagnated, spending on software, data, brand, and intellectual property has surged to 38% of total business investment, up from 22% in 2005 (OECD 2025). Yet these assets are under-measured in GDP and under-leveraged for growth.
| Category | Share of Business Investment 2005 | 2025 | CAGR | Source |
|---|---|---|---|---|
| Tangible assets | 78 % | 62 % | -1.4 % | StatsCan |
| Intangible assets | 22 % | 38 % | +3.2 % | OECD 2025 |
| Productivity growth (avg.) | 1.4 % | 0.9 % | — | BoC |
Why it matters
- Intangibles drive competitive advantage but aren’t collateralized easily.
- Accounting and lending frameworks lag digital-era realities.
- Knowledge-intensive sectors depend on IP protection and data rights.
What leaders can do
- Map and value intangibles — patents, data, processes, and brand equity.
- Engage financial institutions on new collateral models.
- Use digital twins of operations to quantify intangible ROI.
- Advocate for updated productivity metrics. GDP undercounts digital wealth.
Arcus Insight: Canada’s next productivity leap won’t come from machines — it will come from math. Intangibles are the new infrastructure.