Branch and Directorate
The Communications and Marketing Branch (CMB) ensures that the Communications Policy of the Government of Canada is consistently applied across Industry Canada. CMB offers many services to sectors, senior managers and the Deputy Ministers' and Minister's Offices. These services include communications planning, media relations, advisory services, marketing, public opinion research and more.
Rationale
Ongoing research for and evaluation of programs and services is a requirement of the Communications Policy of the Government of Canada.
On behalf of Industry Canada, CMB subscribes to Corporate Connection, a syndicated survey, undertaken twice yearly among CEOs and senior executives of small, medium and large Canadian firms. This business survey is of special interest to Industry Canada as it encompasses businesses of all sizes and thus represents the entire business community, one of our key stakeholder groups.
The focus of the study is on topical, broad-based corporate issues, including policy and economic matters, with emphasis on business interaction with government. Industry Canada's annual subscription agreement entitles the Department to five proprietary questions per year.
In the fall 2007, Industry Canada's proprietary questions focused on IT infrastructure, the two-way trade impact on innovation, and the impact of compliance burden.
Corporate Connection is a syndicated study that is proprietary to the research firm. With the exception of Industry Canada's own proprietary questions and findings, the Department cannot publicly share the overall report without the express consent of the firm.
Anticipated Outcomes / Benefits
The research findings will help Industry Canada better understand the business community in Canada. The findings will feed into departmental briefings, communications plans and environmental analyses used in the development and tracking of departmental policies and programs relevant to business audiences.
Research Information
The survey consists of 30-minute telephone interviews, conducted twice a year, in the spring and in the fall.
In total, 400 interviews were conducted with a mix of small, medium and large firms between October 18th and November 23rd, 2007. The sample is proportionate to the distribution of the business population in Canada by sector and region, as reflected in Statistics Canada's Business Register. A sample of this size is accurate to within plus or minus 5 per cent, 19 times out of 20.
Respondents are Canadian CEOs, presidents, vice-presidents, business owners and other senior decision makers.
Research Firm: Phoenix Strategic Perspectives Inc.
Contract #: U1400-073272/001/CY
Contract issued by: PWGSC
Contract value: The total value of the annual subscription is $26,500; however, the cost for carrying out the research for Industry's proprietary questions is estimated at $4,000.
Corporate Connection—Report to Industry Canada, Fall 2007
Corporate Connection—Report to Industry Canada—Fall 2007
POR Number: 202-07
Contract Number: U1400-073272/001/CY
Award Date: 2007-10-05
Fieldwork Completion Date: 2007-11-23
Any questions regarding this report can be directed to:
Communications and Marketing Branch
Industry Canada
C.D. Howe Building
Room 442D, 235 Queen Street
Ottawa Ontario K1A 0H5 Canada
Telephone: 343-291-3578
Fax: 613-952-5162
Email: janis.camelon@canada.ca
Phoenix Strategic Perspectives Inc.
1678 Bank Street, Suite 2, Ottawa, Ontario K1V 7Y6
Telephone: 613-260-1700
Fax: 613-260-1300
Email: info@phoenixspi.ca
www.phoenixspi.ca
Table of Contents
Introduction
Corporate Connection is a twice-yearly survey of CEOs and senior executives that focuses on current corporate and public affairs issues. For this wave of the study, 400 interviews were completed between October 18 and November 23, 2007. Over half of the sample (59%) consisted of CEOs, presidents and business owners. The results were weighted by size, sector and region to reflect the actual distribution of firms across Canada (according to Statistics Canada data). Based on a sample of this size, the findings can be considered to be accurate to within +/- 5%, 19 times out of 20.
This study was conducted by Phoenix Strategic Perspectives, a public opinion research firm that specializes in public affairs and special audience research, in particular business audiences. Following the substantive questions reported on in this summary report is a set of graphs that present the characteristics of survey participants and their businesses. Where the analysis focuses on the size of business, surveyed companies have been grouped into the following categories: small (less than 50 employees), medium-sized (50-99), and large (100 employees and more, with approximately two-thirds of the large firms having 200 or more employees). The set of questions addressed in this report is appended.
Executive Summary
This report presents the results for questions asked on behalf of Industry Canada that were included in the fall 2007 wave of Corporate Connection. The objective of the research was to seek the views of corporate executives regarding issues related to information technology (IT), innovation, and compliance with government regulations. The questions asked focused on the perceived importance of IT infrastructure issues, the impact of two-way trade and investment on innovation, efforts expended by business to comply with government regulations, and proposed consolidation of such regimes.
Business leaders offered mixed perceptions of the need for improvements to Canada's IT infrastructure to ensure that Canadian businesses can take advantage of economic opportunities. Approximately half (53%) offered middling scores on a 7-point scale. That said, almost one in five (19%) consider this to be a serious issue, while slightly more (23%) think it is not a significant issue. Executives pointed to a range of IT infrastructure issues deemed to be in need of government attention at this time, from a business perspective, with none dominating. That said, they were most likely identify rural/remote broadband access, the need for more competition in general, and less regulation of telecom providers (9-11%). Business leaders were more decisive in terms of the effects of two-way trade on technology and innovation, with two-thirds seeing a link between the two. Moreover, 38% feel it helps a great deal. That said, this view has softened somewhat since 2005.
A small majority (52%) of executives perceived that their firms' efforts complying with government regulations to be about the same now as it was a few years ago. Those who perceived a change were similarly likely to describe the situation as having worsened (22%) or improved (25%). Exactly two-thirds of executives expect consolidating all government requirements affecting business (federal, provincial and municipal) into one set of regulations would have at least a moderate impact on the compliance costs or burden experienced by their business, although the impact is more likely to be seen as moderate, not big (39% vs. 27%). Exactly two-thirds of executives expect such consolidation of business requirements to have at least a moderate impact on the compliance costs or burden experienced by their business, although the impact is more likely to be seen as moderate, not big (39% vs. 27%). The remaining one-third expects this to have little-to-no impact.
Findings
Mixed Views on Need to Improve Canada's IT Infrastructure
Turning to Canada's telecommunications and information technology (IT) infrastructure, executives offered mixed assessments of the need for improvements to ensure that Canadian businesses can take advantage of the economic opportunities available to them. Approximately half (53%) offered middling scores (i.e. 3-5) on a 7-point scale. That said, almost one in five (19%) consider this to be a serious issue, while slightly more (23%) think it is not a significant issue (scores of 1-2).
Executives of large firms were more likely than those in smaller firms to see the need for improvements to our IT infrastructure (44% vs. 36-38%), and to think this is a highly serious issue (23% vs. 17-19%).
| Small | Medium | Large | |
|---|---|---|---|
| 6/7, highly serious | 19% | 17% | 23% |
| 5 | 17% | 21% | 21% |
| 4 | 21% | 22% | 20% |
| 3 | 13% | 21% | 14% |
| 1-2, not serious | 25% | 18% | 21% |
Executives of firms closest to Canada's coasts were the most apt to see the need for improvements to our IT infrastructure (44% each vs. 35% in Ontario, and 27% in Quebec). However, western executives were the most likely to not see this as a serious issue (33% vs. 14% in Quebec, and 21% elsewhere).
| Atlantic | Quebec | Ontario | West | |
|---|---|---|---|---|
| 6/7, highly serious | 22% | 7% | 25% | 20% |
| 5 | 22% | 20% | 10% | 24% |
| 4 | 18% | 29% | 27% | 12% |
| 3 | 8% | 20% | 17% | 9% |
| 1-2, not serious | 21% | 14% | 21% | 33% |
Range of Important IT Infrastructure Issues Identified — None Dominate
Corporate executives pointed to a range of IT infrastructure issues deemed to be in need of government attention at this time, from a business perspective, with none dominating. Eleven percent each cited rural/remote broadband access and the need for more competition in general. Following these issues, 9% pointed to less regulation of telecom providers. Smaller numbers (3-6%) pointed to changing foreign investment limits, increasing access to telecommunications and IT in general, keeping up to date with new technologies, increasing Internet access in general, and price regulation.
Numerous issues were identified by no more than nine executives each and were included in the 'other' category. These were improving Internet security, improving wireless coverage, training more workers on new technologies, improving wireless networking, and increasing the speed of broadband Internet access.
In total, 42% did not identify any issues: 27% did not offer a response, while 15% said there was nothing in need of attention at this time.
Executives of small firms were the most likely to not perceive any issues in need of government attention at this time: 17% vs. 12% of large, and 8% of medium-sized firms. That said, they were also the most apt to see broadband access in rural or remote areas to be an important issue (13% vs. 2-6% of larger firms). Executives of medium-sized firms were more likely than others to see more competition as important (22% vs. 8-9%).
Turning to regional variations, western executives were more likely than others to perceive there to be no issues (21% vs. 6% in Quebec, and 15% elsewhere). They were also the most apt to identify the need for more competition as an important issue (18% vs. 3-9%). Executives in Ontario were much more likely than those elsewhere to see rural or remote broadband access as an important issue (17% vs. 4-8%).
Two-Way Trade Seen to Have Positive Impact on Innovation in Canada
Over two-thirds (67%) of surveyed executives believe that the two-way flow of trade and investment helps with the development of new technology and innovation in Canada. That said, just over one-third (38%) think it helps a great deal (scores of 6-7 on 7-point scale). Only 10% dissented, viewing it as not helpful (scores of 1-3).
The perception that two-way trade and investment helps a considerable amount with the development of new technology and innovation increased along with firm size (from 37% of small to 40% of medium-sized, to 51% or large firms).
| Small | Medium | Large | |
|---|---|---|---|
| 6/7, considerable amount | 37% | 40% | 51% |
| 5 | 28% | 35% | 29% |
| 4 | 21% | 22% | 14% |
| 3 | 5% | 2% | 4% |
| 1/2, does not help | 6% | - | - |
Executives in Ontario were the most likely to think that the two-way flow of trade and investment helps a lot (46%), followed by those in Atlantic Canada (42%), the west (35%), and Quebec (27%).
| Atlantic | Quebec | Ontario | West | |
|---|---|---|---|---|
| 6/7, considerable amount | 42% | 27% | 46% | 35% |
| 5 | 22% | 34% | 32% | 24% |
| 4 | 10% | 29% | 17% | 22% |
| 3 | 7% | 8% | 1% | 6% |
| 1/2, does not help | 3% | - | 3% | 11% |
Since 2005, perceptions that the two-way flow of trade and investment is helpful with Canadian innovation and the development of new technology have softened. While majorities remain likely to hold this view overall, the size has diminished (67% vs. 77%). Moreover, the proportion of those feeling strongly about it has dropped considerably (from 53% in 2006 to 38%).
Mixed Views on Efforts Needed to Comply Compared to a Few Years Ago
When looking at the compliance burden now compared to a few years ago, a small majority of executives (52%) characterized their firms' efforts dealing with government regulations as about the same as it was then. Those who perceived a change were similarly likely to describe the situation as having worsened (22%) or improved (25%). In both cases, executives were more likely to see a moderate, rather than considerable, change.
Executives of small firms were the most likely to perceive no change in their efforts vis-à-vis government regulations (55% vs. 42% of large and 36% of medium-sized firms). Executives of large firms were the most likely to have perceived an improvement in this area (36% vs. 26% of small, and 18% of medium firms), while those of medium-sized firms were the most likely to perceive the situation to have worsened (47% vs. 19-22%).
Regionally, executives in Atlantic Canada were much more likely to perceive no change in their compliance efforts compared to a few years ago (70% vs. 48-51% elsewhere). Quebec executives were twice as likely to characterize the situation as having improved (44% vs. 17% in Atlantic Canada, and 21-22% elsewhere). Meanwhile, those west of the Ontario-Quebec border were more than three times more likely than those east of the border to say the situation has worsened (27-29% vs. 4-8%).
Compared to 2004, executives in 2007 were more likely to characterize their compliance situation as having improved compared to a few years ago (25% vs. 17% in 2004), and less likely to say it had worsened (22% vs. 30% in 2004). That said, executives in 2004 and 2007 were just as likely to perceive no real change.
Two-thirds Expect Consolidating Requirements to Impact Compliance Burden
Executives were read the following information, and asked to assess the impact of this approach:
A way of potentially reducing the compliance costs to businesses is to consolidate all government requirements affecting business, at the municipal, provincial and federal levels, into one set of regulations.
Exactly two-thirds of executives expect such consolidation of business requirements to have at least a moderate impact on the compliance costs or burden experienced by their business, although the impact is more likely to be seen as moderate, not big (39% vs. 27%). The remaining one-third expects this to have little-to-no impact, including 19% who expect none at all.
Business executives in larger firms were more likely than others to expect regulation consolidation to positively impact on their compliance burden (73-71% vs. 64% of small firms).
Regionally, the further west the location of the firm, the less likely executives are to anticipate at least a moderate impact on their compliance burden, from 81% in Atlantic Canada, to 71% in Quebec, 67% in Ontario, and 58% in the west. That said, business leaders in Quebec were much more likely than others to expect this to have a big impact (58% vs. 22% in Ontario, 18% in the west, and 10% in the east).
Characteristics of Survey Participants
The following graphs present the characteristics of survey participants by position of respondent, business size, region, and sector. Note that unweighted data is used to present the characteristics of survey participants.
Appendix
Questions Asked
Turning to Canada's telecommunications and information technology (IT) infrastructure,
- To what extent do you think that this needs to be improved to ensure that businesses in Canada can take advantage of the economic opportunities available to them? Please use a 7-point scale, where 1 means you think this is not an issue at all, and 7 means a very serious issue.
- From a business perspective, what is the most important issue at this time in need of government attention in terms of Canada's telecommunications and IT infrastructure? [Do Not Read List; Record First Mention; Accept Multiple Responses; Record Specifics]
More competition
Less regulation of telecom providers
Increasing/eliminating foreign investment limits on Canadian telecom providers
Broadband in rural/remote areas
Nothing/no issues
Other (specify): _______________ - To what extent do you think the two-way flow of trade and investment helps with the development of new technology and innovation in Canada? Please use a 7-point scale, where '1' means not at all, and '7' means a great deal. TS06
- How would you describe the efforts expended by your firm now compared to a few years ago in terms of dealing with government regulations? Do you think it is much better now, moderately better, about the same, moderately worse or much worse? TF04
- A way of potentially reducing the compliance costs to businesses is to consolidate all government requirements affecting business, at the municipal, provincial and federal levels, into one set of regulations. How big an impact do you think this would have on the compliance costs or burden to your business… would you say a big impact, moderate, small, or no impact at all?