Thank you, Mr. Speaker. Often in this House we have talked about a knowledge economy, but it occurs to me today that we might need a refresher on what exactly that means, as it is a relatively new concept as a source of economic focus. The knowledge economy today is recognized as a major driver of productivity and economic growth in Canada and all across the world.
It is defined as an economy in which growth is dependent on the quality, quantity, and accessibility of the information available rather than on the means of production. Employment in this economy is characterized by strong demand for highly skilled workers.
A major player in Canada's knowledge economy is the information and technology sector, which has generated more than 1.1 million direct and indirect jobs, according to last year's figures from the Information and Technology Association of Canada. This sector invests almost $5 billion a year in research and development. The Northwest Territories can play an important role in the growth of Canada's knowledge economy, because we have unique northern knowledge of great value, including Indigenous and local knowledge. Our government must lead the way in making sure that our knowledge is recognized, grown, and shared to benefit all of our residents and communities.
That means investment in education and training, as well as research and development. It also means creating formal and informal networks to ensure that knowledge flows to where it is needed. On the national level, the Government of Canada is building relationships among industry, government, and academia. The Prime Minister has committed to shifting Canada from its resource-dependent past to a more knowledge-driven future in his innovation agenda. The NWT can benefit from infrastructure funding linked to that agenda. Canada is also supporting these efforts through its Networks and Centres of Excellence program.
I want to pass on a bit of wisdom from Richard Florida, a professor at the University of Toronto who took part in an analysis of the knowledge economy in Ontario. They learned that the knowledge economy is really a collection of local economies and that clusters of talent, companies, universities, and other knowledge-based institutions are increasingly local challenges. To be effective, federal, provincial, and territorial policies must bolster, build from, and strengthen these concentrated local assets.
Our government must take action, Mr. Speaker. We have much to do. Thank you, Mr. Speaker.