If you like our way of life in Canada, you might want to pay attention to the “chilling” report by the Conference Board of Canada which gives this country low grades on things like innovation, R&D and sustainable development.

The report card paints a portrait of a mediocre performance that will not be good enough to meet the fundamental goal of a high and sustainable quality of life for all Canadians,” according to a summary of the report, issued yesterday.

And the conference board isn’t the only one sounding the warning bells.

Canada has all the makings of a global leader, yet it has opted to become a global laggard, preferring to fritter away its jackpot of rich resources rather than build viable multinationals that are ultimately the country’s best defence in a globalized world. – Why Mexicans don’t drink Molson, Andrea Mandel-Campbell

This isn’t just business complaining or Canada-bashing. Manufacturing is in decline. Resources like mining and petroleum are finite. Others, like forestry, need investment and innovation to be sustainable in the long term.

These are the economic engines that fund our universal health care and high-quality education, among other things. If we want to keep this way of life, we have to think seriously about how to develop new engines that will fuel our country in the 21st-century global economy.

For an educated, healthy “first-world” country, innovation is the key. There are huge economic opportunities in sustainable and alternative energy generation, new media technologies, 3-D imaging and the bio-sciences.

But seizing these opportunities will require a strong entrepreneurial spirit, creative thinking, investment, and a willingness to take risk.

In another life, GT is an export entrepreneur who lives and dies by R&D and innovation. The warning bells sounded this week put meat on the bones of fears that have been niggling away about Canada’s future.