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Productivity and innovation: an overview of the issues

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Author Info
Petr Hanel () (CIRST, GREDI, Faculte d'administration, Université de Sherbrooke)
Abstract

To introduce the subject, the paper compares the Canadian performance on principal indicators of productivity and innovation with the U.S. and other countries. Follows an overview of principal sources of economic welfare, economic growth and increasing productivity with a special attention given to the relationship between productivity growth and innovation. Before addressing the relationship between innovation and productivity, the paper introduces the concepts and their operational measures or indicators, the sources of innovation and their effects as well as financing and public policies in support of innovation. In the section on the link between innovation and productivity the paper surveys the representative empirical studies of this relationship on industry and enterprise level, including the evidence on private and social returns on investment in R&D and innovation in Canada and abroad. Follows a description of the current econometric modelling of micro-data on innovation and its effect on firm performance. These innovation surveys-based micro econometric studies are inspired by the four-stage CDM model that predicts (1) the probability that a firm innovates, (2) the resources it invests in the activity, (3) the commercial results of innovation and (4) the effect of innovation on firms’ performance indicators such as sales per employee, labour productivity and its growth etc. This model provides the standardized methodology for an ongoing international research project analyzing the data from innovation surveys of majority of OECD countries.

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File URL: http://pages.usherbrooke.ca/gredi/wpapers/GREDI-0722.pdf
File Format: application/pdf
File Function: First version, 2007
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Publisher Info
Paper provided by Departement d'Economique de la Faculte d'administration à l'Universite de Sherbrooke in its series Cahiers de recherche with number 07-22.

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Length: 36 pages
Date of creation: 2007
Date of revision:
Handle: RePEc:shr:wpaper:07-22

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Postal: Sherbrooke, Qu�bec, J1K 2R1
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Web page: http://www.usherbrooke.ca/adm/faculte/departements/economique/recherche/cahier_rech.html
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Related research
Keywords: Innovation R&D productivity econometric modelling Canada

Find related papers by JEL classification:
D24 - Microeconomics - - Production and Organizations - - - Production; Capital and Total Factor Productivity; Capacity
L6 - Industrial Organization - - Industry Studies: Manufacturing
O47 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Measurement of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence

This paper has been announced in the following NEP Reports:

This item is featured on the following reading lists:
  1. Socio-Economics of Innovation
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Baldwin, John R. & Gaudreault, Valérie & Gellatly, Guy, 2002. "Financing Innovation in New Small Firms: New Evidence from Canada," Analytical Studies Branch Research Paper Series 2002190e, Statistics Canada, Analytical Studies Branch. [Downloadable!]
  2. Danny Leung, 2004. "The Effect of Adjustment Costs and Organizational Change on Productivity in Canada: Evidence from Aggregate Data," Working Papers 04-1, Bank of Canada. [Downloadable!]
  3. Surendra Gera & Wulong Gu, 2004. "The Effect of Organizational Innovation and Information and Communications Technology on Firm Performance," International Productivity Monitor, Centre for the Study of Living Standards, vol. 9, pages 37-51, Fall. [Downloadable!]
  4. Baldwin, John R. & Hanel, Peter, 2000. "Multinationals and the Canadian Innovation Process," Analytical Studies Branch Research Paper Series 2000151e, Statistics Canada, Analytical Studies Branch. [Downloadable!]
  5. Steven Globerman & John C. Ries & Ilan Vertinsky, 1994. "The Economic Performance of Foreign Affiliates in Canada," Canadian Journal of Economics, Canadian Economics Association, vol. 27(1), pages 143-56, February. [Downloadable!] (restricted)
  6. Danny Leung, 2004. "The Effect of Adjustment Costs and Organizational Change on Productivity in Canada: Evidence from Aggregate Data," International Productivity Monitor, Centre for the Study of Living Standards, vol. 9, pages 52-61, Fall. [Downloadable!]
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