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Innovation and Productivity: Summary Results for Canadian Manufacturing Establishments

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  • Pierre Therrien

    ()

  • Petr Hanel

    ()

Abstract

Lagging innovation performance is seen as a key factor explaining weak productivity growth in Canada. This article uses data from the Canadian Survey of Innovation 2005 and the Annual Survey of Manufactures and Logging (ASML) to estimate an econometric model linking innovation and productivity in manufacturing firms. Our main findings are that firms with higher innovation output (measured by innovation sales per employee, i.e. sales of new and improved products per employee) achieve higher labour productivity, even when size of firm, intensity of human and physical capital, and labour productivity at the beginning of the period are taken into account.

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File URL: http://www.csls.ca/ipm/22/IPM-22-Therrien-Hanel.pdf
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Bibliographic Info

Article provided by Centre for the Study of Living Standards in its journal International Productivity Monitor.

Volume (Year): 22 (2011)
Issue (Month): (Fall)
Pages: 11-28

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Handle: RePEc:sls:ipmsls:v:22:y:2011:2

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  1. Petr Hanel, 2007. "Productivity and innovation: an overview of the issues," Cahiers de recherche 07-22, Departement d'Economique de la Faculte d'administration à l'Universite de Sherbrooke.
  2. Rachel Griffith & Elena Huergo & Jacques Mairesse & Bettina Peters, 2006. "Innovation and Productivity Across Four European Countries," Oxford Review of Economic Policy, Oxford University Press, vol. 22(4), pages 483-498, Winter.
  3. Petr Hanel, 2000. "R&D, Interindustry and International Technology Spillovers and the Total Factor Productivity Growth of Manufacturing Industries in Canada, 1974-1989," Economic Systems Research, Taylor & Francis Journals, vol. 12(3), pages 345-361.
  4. John Baldwin & Wulong Gu, 2003. "Export-market participation and productivity performance in Canadian manufacturing," Canadian Journal of Economics, Canadian Economics Association, vol. 36(3), pages 634-657, August.
  5. Gu, Wulong & Baldwin, John R., 2004. "Innovation, Survival and Performance of Canadian Manufacturing Plants," Economic Analysis (EA) Research Paper Series 2004022e, Statistics Canada, Analytical Studies Branch.
  6. Baldwin,John R. & Hanel,Petr, 2003. "Innovation and Knowledge Creation in an Open Economy," Cambridge Books, Cambridge University Press, number 9780521810869, April.
  7. James R. Tybout, 2001. "Plant- and Firm-Level Evidence on "New" Trade Theories," NBER Working Papers 8418, National Bureau of Economic Research, Inc.
  8. Petr Hanel & Dirk Czarnitzki & Julio Miguel Rosa, 2005. "Evaluating the Impact of R&D Tax Credits on Innovation: A Microeconometric Study on Canadian Firms," Cahiers de recherche 05-01, Departement d'Economique de la Faculte d'administration à l'Universite de Sherbrooke.
  9. Sascha O. Becker & Peter Egger, 2007. "Endogenous Product versus Process Innovation and a Firm’s Propensity to Export," CESifo Working Paper Series 1906, CESifo Group Munich.
  10. repec:fth:inseep:9833 is not listed on IDEAS
  11. Bruno Crépon & Emmanuel Duguet & Jacques Mairesse, 1998. "Research, Innovation and Productivity : An Econometric Analysis at the Firm Level," Working Papers 98-33, Centre de Recherche en Economie et Statistique.
  12. Jan De Loecker, 2004. "Do Exports Generate Higher Productivity? Evidence from Slovenia," LICOS Discussion Papers 15104, LICOS - Centre for Institutions and Economic Performance, KU Leuven.
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Cited by:
  1. Andrew Sharpe & Ricardo de Avillez, 2012. "A Detailed Analysis of Nova Soctia;s Productivty Performance, 1997-2010," CSLS Research Reports 2012-05, Centre for the Study of Living Standards.
  2. Don Drummond & Annette Ryan & Michael R. Veall, 2013. "Improving Canada's Productivity Performance: The Potential Contribution of Firm-level Productivity Research," International Productivity Monitor, Centre for the Study of Living Standards, vol. 26, pages 86-93, Fall.

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