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Innovation Activities and Export Performance of Canadian Small and Medium-Sized Agri-Food Firms

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  • Lota Tamini
  • Aristide B. Valéa

Abstract

Canadian small and medium-sized firms face two major challenges, namely, that of innovation in supporting their growth and improving their competitiveness and that of access to international markets. The objective of this study is to analyze the impact of research and Development (R&D) investment on the export performance of Canadian agri-food companies and on that of related sectors, namely, the textile and clothing sector and the manufacture of leather goods and similar products. We used impact assessment methods to analyze the effects of firms' innovation activities on their export performance. First, we analyzed explanatory factors for R&D expenses; second, we analyzed the impact of R&D on extensive (market access) and intensive (trade value) margins of trade. In doing so, we used Statistics Canada's National Accounts Longitudinal Microdata File (NALMF) for 2010 to 2015, which is coupled with the Trade by Exporter Characteristics (TEC) database. The size of firms and their support from the Canadian government affect their propensity to invest in R&D, the value of R&D expenses and their intensity, as measured from the ratio of R&D to sales of goods and services. Overall, our results show that investment in R&D has a positive impact on the export performance of agri-food SMEs. Les petites et moyennes entreprises (PME) canadiennes font face à deux grands enjeux soit celui de l’innovation afin notamment de soutenir leur croissance et améliorer leur compétitivité et celui de l’accès aux marchés internationaux. Le présent projet de recherche a pour objectif d’analyser l’impact des investissements en recherche et développement (R&D) sur les performances à l’exportation des entreprises agroalimentaires canadiennes et de celles de secteurs connexes soit les industries du textile et des vêtements et de la fabrication de produits du cuir et produits analogues. Les méthodes d’évaluation d’impact seront utilisées pour analyser les effets des activités d’innovation des entreprises sur leurs performances à l’exportation. Dans un premier temps, les facteurs explicatifs des investissements en R&D sont analysé. Puis nous analysons les effets des investissements en R&D sur les marges extensive (accès aux marchés) et intensive (valeur du commerce). Nous utilisons le Fichier de micro données longitudinales des comptes nationaux (NALMF) de Statistique Canada pour la période de 2010 à 2015 qui est couplé au fichier du programme de Commerce selon les caractéristiques des exportateurs (TEC). La taille des entreprises et l’appui du gouvernement canadien sont déterminants dans la probabilité d’investir dans la R&D ainsi que le montant de ces investissements et son intensité mesurée par le ratio du montant investit sur les ventes totales de biens et services des PME agroalimentaires.

Suggested Citation

  • Lota Tamini & Aristide B. Valéa, 2019. "Innovation Activities and Export Performance of Canadian Small and Medium-Sized Agri-Food Firms," CIRANO Working Papers 2019s-09, CIRANO.
    • Handle: RePEc:cir:cirwor:2019s-09
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    File URL: https://cirano.qc.ca/files/publications/2019S-09.pdf
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    References listed on IDEAS

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    1. Lota Tamini, 2020. "Comment renforcer les chaînes de valeur bioalimentaires québécoises pour leur meilleure compétitivité sur le marché local et à l’étranger ?," CIRANO Project Reports 2020rp-31, CIRANO.

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    More about this item

    Keywords

    Research and development; Agri-food; Small and medium-sized firm; Extensive margin of international trade; Intensive margin of international trade; Recherche et développement; Agroalimentaire; Petites et moyennes entreprises; Marge extensive du commerce international; Marge intensive du commerce international;
    All these keywords.

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • Q16 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - R&D; Agricultural Technology; Biofuels; Agricultural Extension Services
    • Q17 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agriculture in International Trade

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