In any study of Canadian industry today, words such as growth and development quickly come into their own. The very scope and rapidity of the changes have introduced a new pace which in many ways is unique. Some of the reasons are not hard to trace. Once growth reaches a certain stage it seems to accumulate momentum. The proximity of Canada to the United States and her access to the industrial technology of that country have also contributed greatly.

A large measure of the expansion of Canadian industry has been the result of extensions of United States corporate activity into Canada through the establishment or development of branches and subsidiaries. In this manner, United States industrial technology, supported by abundant sources of financing in that country, has speeded and extended the process of Canadian development. And important parts of the growth which provide sources of supply for United States industry are in turn closely linking Canadian growth to growth in the United States economy. Participation by British and European enterprise and industry to a greater degree than formerly should also be noted, although it is much smaller in scale than the parts sponsored by United States industry. The pace of development would have been much slower had there not been this borrowing of non-resident resources both technological and financial. In the past half-dozen years or so, over half the increase in investment in Canadian industry has been owned by non-residents. That suggests the degree of financial assistance. It would be very difficult to evaluate the borrowing of technology but in some industries it has been very great and has provided the indispensable “know-how” without which ventures would carry much greater risks. Most of this increased investment has taken the form of equity ownership and control which carries with it potential claims to participate in subsequent growth in the rapidly developing, commodity-producing industries—manufacturing and mineral production.