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Comparing the Innovation Performance of Canadian Firms and those of Selected European Countries: An Econometric Analysis


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  • Pierre Mohnen


  • Pierre Therrien


This paper follows on Therrien and Mohnen (2001). Here, we compare the innovation performance of manufacturing firms in Canada and four European countries - Germany, France, Ireland, and Spain - on the basis of an econometric model that identifies some of the determinants of the probability to innovate and of the intensity of innovation. We estimate jointly a probit for the incidence of innovation and a censored ordered probit for the intensity of innovation. The analysis is performed on the data from Statistics Canada's 1999 Innovation Survey and Eurostat's second Community Innovation Survey. Due to administrative constraints, data from Europe and Canada cannot be pooled together. From the estimates we compare and disentangle the observed and the expected innovation intensities in Canada and in Europe, using the framework developed by Mairesse and Mohnen (2002). Canada has a higher proportion of innovating firms but a lower share of innovative sales for its innovating firms. From the two effects combined we expect a typical Canadian firm to have a slightly higher share of innovative sales. The effects of firm size, cooperation in innovation, and government support make Canadian firms slightly more innovative than European firms, whereas the sectoral composition of output, the pressure of competition, the scope of innovation activities, and the novelty of innovation confer a slight advantage to Europe. Cette étude fait suite à celle de Therrien et Mohnen (2001). Cette fois-ci, nous comparons les performances en matière d'innovation des entreprises du Canada et de quatre pays européens - l'Allemagne, la France, l'Irlande et l'Espagne - à partir d'un modèle économétrique, où nous identifions quelques-uns des facteurs qui déterminent la probabilité d'innover et l'intensité d'innovation. Nous estimons conjointement un probit pour la probabilité d'innover et un probit ordonné pour l'intensité d'innover. Pour des raisons administratives, nous ne sommes pas en mesure d'empiler les données canadiennes et européennes. Ensuite, nous comparons les probabilités et les intensités d'innover observées et attendues en utilisant le cadre de décomposition développé par Mairesse et Mohnen (2002). Plus d'entreprises innovent au Canada que dans les quatre pays européens, mais parmi celles qui innovent les européennes ont un plus grand chiffre d'affaires en produits innovants. La taille des entreprises, la coopération en innovation et l'aide gouvernementale favorisent l'innovation au Canada, tandis que la composition sectorielle, la pression concurrentielle, le nombre d'activités innovantes et le degré de nouveauté des produits confèrent un léger avantage aux entreprises européennes de notre échantillon.

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Bibliographic Info

Paper provided by CIRANO in its series CIRANO Working Papers with number 2002s-80.

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Date of creation: 01 Sep 2002
Date of revision:
Handle: RePEc:cir:cirwor:2002s-80

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Keywords: Innovation surveys; innovativeness; international comparison; Enquêtes innovation; innovativité; comparaison internationale;

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  1. Jacques Mairesse & Pierre Mohnen, 2001. "To Be or Not To Be Innovative: An Exercise in Measurement," NBER Working Papers 8644, National Bureau of Economic Research, Inc.
  2. Hans Loof & Almas Heshmati, 2006. "On the relationship between innovation and performance: A sensitivity analysis," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 15(4-5), pages 317-344.
  3. Paul M Romer, 1999. "Endogenous Technological Change," Levine's Working Paper Archive 2135, David K. Levine.
  4. Bruno Crepon & Emmanuel Duguet & Jacques Mairessec, 1998. "Research, Innovation And Productivi[Ty: An Econometric Analysis At The Firm Level," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 7(2), pages 115-158.
  5. Scott Stern & Michael E. Porter & Jeffrey L. Furman, 2000. "The Determinants of National Innovative Capacity," NBER Working Papers 7876, National Bureau of Economic Research, Inc.
  6. repec:fth:inseep:9833 is not listed on IDEAS
  7. Marcel Dagenais & Pierre Mohnen, 2000. "Towards an Innovation Intensity Index: The Case of CIS 1 in Denmark and Ireland," CIRANO Working Papers 2000s-20, CIRANO.
  8. Cohen, Wesley M & Levinthal, Daniel A, 1989. "Innovation and Learning: The Two Faces of R&D," Economic Journal, Royal Economic Society, vol. 99(397), pages 569-96, September.
  9. Pierre Mohnen & Pierre Therrien, 2001. "How Innovative Are Canadian Firms Compared to Some European Firms? A Comparative Look at Innovation Surveys," CIRANO Working Papers 2001s-49, CIRANO.
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Cited by:
  1. van Moorsel, Daryl & Cranfield, John A.L. & Sparling, David, 2005. "Factors Affecting Biotechnology Innovation in Canada: Analysis of the 2001 Biotechnology Use and Development Survey," Working Papers 34121, University of Guelph, Department of Food, Agricultural and Resource Economics.
  2. Richard Dion & Robert Fay, 2008. "Understanding Productivity: A Review of Recent Technical Research," Discussion Papers 08-3, Bank of Canada.
  3. Mickey Folkeringa & Andre van Stel & Joris Meijaard, 2005. "Innovation, strategic renewal and its effect on small firm performance," Papers on Entrepreneurship, Growth and Public Policy 2005-36, Max Planck Institute of Economics, Entrepreneurship, Growth and Public Policy Group.
  4. Janz, Norbert & Lööf, Hans & Peters, Bettina, 2004. "Firm Level Innovation and Productivity - Is there a Common Story Across Countries?," Working Paper Series in Economics and Institutions of Innovation 24, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies.
  5. repec:hal:cesptp:halshs-00115717 is not listed on IDEAS
  6. repec:hal:journl:halshs-00115717 is not listed on IDEAS
  7. Wojciech Grabowski & Teoman Pamukcu & Krzysztof Szczygielski & Sinan Tandogan, 2013. "Does Government Support for Private Innovation Matter? Firm-Level Evidence from Turkey and Poland," CASE Network Studies and Analyses 0458, CASE-Center for Social and Economic Research.
  8. Pierre Mohnen & Pierre Therrien, 2005. "Comparing the Innovation Performance in Canadian, French and German Manufacturing Enterprises," CIRANO Working Papers 2005s-33, CIRANO.
  9. Frédérique Savignac, 2006. "The impact of financial constraints on innovation : evidence from french manufacturing firms," Cahiers de la Maison des Sciences Economiques v06042, Université Panthéon-Sorbonne (Paris 1).


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