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Impediments to innovation faced by Canadian manufacturing firms

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  • Dominique Tourigny
  • Can Le
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    Abstract

    Using the findings of the 1999 Survey of Innovation in the Canadian manufacturing sector, we analyse the impediments, i.e. the problems and obstacles, that firms in the sector face when they innovate. In particular, we assess the factors which inhibit innovation, especially with regard to by small and medium enterprises (SMEs). First we try to establish the relationship between the impediments to innovation and various firm characteristics. Then we assess whether these impediments actually prevent firms from innovating or whether firms are able to overcome them. We find that the perception of impediments to innovation vary according to firm characteristics. For example, large firms are more likely to report the high cost of developing innovation and organizational rigidities as impediments than small firms. However, they seem to have less difficulty with regard to financing innovation projects compared to SMEs. Our results also show that firms seem to be able to overcome most of the obstacles to innovation. Therefore, the impediments featured in innovation survey(s) should not be interpreted as impenetrable barriers that prevent innovation. The sole exception is organizational rigidities. Firms facing organizational rigidities are less likely to become innovative, whether they are small, medium, or large. From our results, we conclude that small firms do not face particular impediments which prevent them from becoming innovative.

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    Bibliographic Info

    Article provided by Taylor & Francis Journals in its journal Economics of Innovation and New Technology.

    Volume (Year): 13 (2004)
    Issue (Month): 3 ()
    Pages: 217-250

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    Handle: RePEc:taf:ecinnt:v:13:y:2004:i:3:p:217-250

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    Related research

    Keywords: Innovation; Impediments;

    References

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    1. Sabourin, David, 2001. "Skill Shortages and Advanced Technology Adoption," Analytical Studies Branch Research Paper Series, Statistics Canada, Analytical Studies Branch 2001175e, Statistics Canada, Analytical Studies Branch.
    2. Lin, Zhengxi & Baldwin, John R., 2001. "Impediments to Advanced Technology Adoption for Canadian Manufacturers," Analytical Studies Branch Research Paper Series, Statistics Canada, Analytical Studies Branch 2001173e, Statistics Canada, Analytical Studies Branch.
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    Cited by:
    1. Pablo D'Este & Simona Iammarino & Maria Savona & Nick von Tunzelmann, 2008. "What hampers innovation? Evidence from the UK CIS4," SPRU Working Paper Series, SPRU - Science and Technology Policy Research, University of Sussex 168, SPRU - Science and Technology Policy Research, University of Sussex.
    2. Silva, Maria & Leitão, João & Raposo, Mário, 2007. "Barriers to Innovation faced by Manufacturing Firms in Portugal: How to overcome it?," MPRA Paper 5408, University Library of Munich, Germany.
    3. Pellegrino, Gabriele & Savona, Maria, 2013. "Is money all? Financing versus knowledge and demand constraints to innovation," MERIT Working Papers, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT) 029, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    4. Giovanni Marin & Alberto Marzucchi & Roberto Zoboli, 2014. "SMEs and Barriers to Eco-Innovation in EU: A Diverse Palette of Greens," SEEDS Working Papers, SEEDS, Sustainability Environmental Economics and Dynamics Studies 0614, SEEDS, Sustainability Environmental Economics and Dynamics Studies, revised Apr 2014.
    5. Rahmouni, Mohieddine, 2011. "Perception des obstacles aux activités d'innovation dans les entreprises tunisiennes
      [Perception of obstacles to innovation activities in Tunisian firms]
      ," MPRA Paper 18306, University Library of Munich, Germany.
    6. Kiss, János, 2014. "Az innováció hatása a vállalati teljesítményre és versenyképességre
      [The impact of innovation activities on firms performance and competitiveness]
      ," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(3), pages 299-314.
    7. Simona Iammarino & Francesca Sanna-Randaccio & Maria Savona, 2007. "The perception of obstacles to innovation. Multinational and domestic firms in Italy," Working Papers of BETA, Bureau d'Economie Théorique et Appliquée, UDS, Strasbourg 2007-12, Bureau d'Economie Théorique et Appliquée, UDS, Strasbourg.
    8. D'Este,Pablo & Rentocchini,Francesco & Vega Jurado,Jaider M., 2012. "The role of human capital in lowering barriers to engage in innovation: evidence from the Spanish innovation survey," INGENIO (CSIC-UPV) Working Paper Series, INGENIO (CSIC-UPV) 201206, INGENIO (CSIC-UPV), revised 03 Aug 2012.
    9. Maria Manuela Natário & João Pedro Couto & Ascensão Maria Braga & Teresa Maria Tiago, 2011. "Dynamics of innovation in European regions," ERSA conference papers, European Regional Science Association ersa11p466, European Regional Science Association.
    10. D’Este, Pablo & Iammarino, Simona & Savona, Maria & von Tunzelmann, Nick, 2012. "What hampers innovation? Revealed barriers versus deterring barriers," Research Policy, Elsevier, Elsevier, vol. 41(2), pages 482-488.

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