AbstractIncreased competition from new industrial countries and an accelerated pace of technological change present new pressures for innovation and adaptation in the Canadian economy. For a number of institutional and historical reasons these processes of adaptation have not proceeded as quickly in Canada as they have in several other industrial countries.Notwithstanding impediments to rapid adaptation, Canada has no choice other than to technologically re-structure its economy on several fronts. These processes of technological development and change will have various effects on jobs and employment. The paper concludes with a discussion of directions for technology and employment policy that appear relevant in light of current and anticipated patterns of change.