THE KNOWLEDGE-BASED ECONOMY - SHIFTS IN INDUSTRIAL OUTPUT

This paper analyses industrial structure in Canada over the period 197 1 to 1991 using Statistics Canada's input-output model and explores mo re closely the role played by the ''new economy'' industries, those in dustries where innovation through the uses of knowledge, technology, a nd skills is the key to generating growth. The conclusions indicate th at Canadian industrial structure is becoming increasingly knowledge-ba sed and technology-intensive, with competitive advantage being rooted in innovation and ideas, the foundations of the new economy. While in the past domestic demand mainly influenced the growth of industries, t rade is becoming much more important. High-knowledge industries in the tradable sector seem to have benefited the most from export performan ce; import competition has hastened the relative decline of low-knowle dge industries.