David Sabourin

Determinants of Innovative Activity in Canadian Manufacturing Firms

The topic of innovation has garnered the interest of a select group of economists from Schumpeter (1939) to Nelson and Winter (1982), who have stressed that it is the key to economic growth. However, until the advent of panel data sets, there was little empirical evidence to link the innovative stance of firms and their performance. Recent work that links dynamic panel datasets on the performance of firms, and special surveys on the strategies that are being pursued by firms, has demonstrated the importance of innovation to the growth of firms. Baldwin et al. (1994) demonstrate that in small and medium-sized Canadian firms, a measure of success that is based on growth, profitability and productivity is related strongly to the emphasis that firms place on innovation. Baldwin and Johnson (1999) use a sample of entrants to show that growth in new firms depends upon whether the firm innovates. Crepon et al. (1998) find that innovation in French firms increases productivity.

Determinants of Innovative Activity in Canadian Manufacturing Firms: The Role of Intellectual Property Rights

This paper examines how several factors contribute to innovative activity in the Canadian manufacturing sector. First, it investigates the extent to which intellectual property right protection stimulates innovation. Second, it examines the contribution that RD but firms and industries that make more intensive use of patents do not tend to produce more innovations. Second, while R&D is important, developing capabilities in other areas, such as technological competency and marketing, is also important. Third, size effects are significant. The largest firms tend to be more innovative. As for competition, intermediate levels of competition are the most conducive to innovation. Fourth, foreign-controlled firms are not significantly more likely to innovate than domestic-controlled firms once differences in competencies have been taken into account. Fifth, the scientific infrastructure provided by university research is a significant determinant of innovation.

Technology Use and Industrial Transformation: Empirical Perspectives

This study examines technology use in Canadas manufacturing sector, and how a set of technology-using manufacturing establishments performed relative to non-users. Data originates from a recent Statistics Canada survey, asking manufacturing firms about their use of 22 advanced manufacturing technologies, and panel data taken from the Census of Manufacturers. Results show that the use of advanced manufacturing technology is widespread, especially in large firms, that multiple-technology use is the norm, and that technologies are generally combined within, as opposed to across, production stages. The technology revolution has been felt more in the area of inspection and communications, and less in fabrication and assembly. In terms of performance, technology-using establishments pay higher wages, enjoy higher labour productivity, and are gaining market share at the expense of non-users.

The Effect of Changing Technology Use on Plant Performance in the Canadian Manufacturing Sector

This paper investigates how changes in technology use of individual plants in the Canadian manufacturing sector are related to two measures of performance --productivity growth and market-share growth.

Impact of Advanced Technology Use on Firm Performance in the Canadian Food Processing Sector

This paper investigates the evolution of industrial structure in the Canadian food processing sector and its relationship to technological change. It uses 1998 special survey data on advanced technology use, plant characteristics and plant performance.

Changes in Foreign Control Under Different Regulatory Climates: Multinationals in Canada

This paper examines the incidence of foreign control in Canadian non-financial industries. It focuses on changes in the share of assets and revenues under foreign control over a long-run period during which Canadas regulatory climate shifted from being more restrictive to more liberal in its treatment of inward foreign direct investment. These regulatory changes coincided with a retrenchment and then a resurgence in the activities of foreign multinationals in Canadian industry. We report aggregate results for non-financial industries, along with specific tabulations for the energy sector. More detailed industry tabulations are presented for the 2000-2003 period.