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Impediments to Advanced Technology Adoption for Canadian Manufacturers

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Author Info
Baldwin, John R.
Lin, Zhengxi

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Abstract

Using survey data, this paper investigates problems that firms in the Canadian manufacturing sector face in their decision to adopt advanced technology. The data show that while the use of advanced technology is relatively important (users account for over 80% of all shipments), it is not widespread among firms (users represent only about one-third of all establishments). One explanation lies in the fact that while advanced technologies provide a wide range of benefits, firms also face a series of problems that impede them from adopting advanced technology. These impediments fall into five groups: cost-related, institution-related, labour-related, organization-related, and information-related.While it might be expected that impediments would be higher for non-users than users of technologies, the opposite occurs. We posit that the reason for this is that innovation involves a learning process. Innovators and technology users face problems that they have to solve and the more innovative firms have greater problems. We test this by examining the factors that are related to whether a firm reports that it faced impediments. Our multivariate analysis reveals that impediments are reported more frequently among technology users than non-users; and more frequently among innovating firms than non-innovating ones. We conclude that the information on impediments in technology and other related surveys (innovation) should not be interpreted as impenetrable barriers that prevent technology adoption. Rather, these surveys indicate areas where successful firms face and solve problems.

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Paper provided by Statistics Canada, Analytical Studies Branch in its series Analytical Studies Branch Research Paper Series with number 2001173e.

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Date of creation: 21 Sep 2001
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Handle: RePEc:stc:stcp3e:2001173e

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Keywords: Manufacturing; Science and technology; Innovation;

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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. Fagerberg, Jan, 1988. "International Competitiveness," Economic Journal, Royal Economic Society, vol. 98(391), pages 355-74, June. [Downloadable!] (restricted)
  2. Baldwin, John R. & Johnson, Joanne, 1995. "Business Strategies in Innovative and Non-innovative Firms in Canada," Analytical Studies Branch Research Paper Series 1995073e, Statistics Canada, Analytical Studies Branch. [Downloadable!]
  3. Baldwin, John R., 1995. "Innovation: The Key to Success in Small Firms," Analytical Studies Branch Research Paper Series 1995076e, Statistics Canada, Analytical Studies Branch. [Downloadable!]
  4. Baldwin, John R. & Yates, Janice, 1999. "Innovation, Training and Success," Analytical Studies Branch Research Paper Series 1999137e, Statistics Canada, Analytical Studies Branch. [Downloadable!]
  5. Baldwin, John R. & Sabourin, David, 1999. "Technology Adoption: A Comparison Between Canada and the United States," Analytical Studies Branch Research Paper Series 1998119e, Statistics Canada, Analytical Studies Branch. [Downloadable!]
  6. Baldwin, John R. & Diverty, Brent & Sabourin, David, 1995. "Technology Use and Industrial Transformation: Empirical Perspectives," Analytical Studies Branch Research Paper Series 1995075e, Statistics Canada, Analytical Studies Branch. [Downloadable!]
  7. Baldwin, John R. & Diverty, Brent, 1995. "Advanced Technology Use in Canadian Manufacturing Establishments," Analytical Studies Branch Research Paper Series 1995085e, Statistics Canada, Analytical Studies Branch. [Downloadable!]
  8. Gellatly, Guy, 2000. "Differences in Innovator and Non-innovator Profiles: Small Establishments in Business Services," Analytical Studies Branch Research Paper Series 2000143e, Statistics Canada, Analytical Studies Branch. [Downloadable!]
Full references

Cited by:
(explanations, 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. Pierre Mohnen & Jacques Mairesse & Marcel Dagenais, 2006. "Innovativity: A Comparison Across Seven European Countries," CIRANO Working Papers 2006s-11, CIRANO. [Downloadable!]
    Other versions:
  2. Sabourin, David, 2001. "Skill Shortages and Advanced Technology Adoption," Analytical Studies Branch Research Paper Series 2001175e, Statistics Canada, Analytical Studies Branch. [Downloadable!]
  3. Martin, Ludivine, 2009. "Understanding the implementation of e-business strategies: Evidence from Luxembourg," MPRA Paper 13645, University Library of Munich, Germany. [Downloadable!]
  4. Baldwin, John R. & Sabourin, David, 2001. "Impact of the Adoption of Advanced Information and Communication Technologies on Firm Performance in the Canadian Manufacturing Sector," Analytical Studies Branch Research Paper Series 2001174e, Statistics Canada, Analytical Studies Branch. [Downloadable!]
    Other versions:
  5. Tebaldi, Edinaldo & Mohan, Ramesh, 2008. "Institutions-Augmented Solow Model And Club Convergence," MPRA Paper 10386, University Library of Munich, Germany. [Downloadable!]
  6. Zhang, T. & Nuttall, W.J., 2007. "An Agent Based Simulation Of Smart Metering Technology Adoption," Cambridge Working Papers in Economics 0760, Faculty of Economics, University of Cambridge. [Downloadable!]
  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. [Downloadable!]
  8. Tebaldi, Edinaldo & Elmslie, Bruce, 2008. "Institutions, Innovation and Economic Growth," MPRA Paper 9683, University Library of Munich, Germany. [Downloadable!]
  9. Baldwin, John R. & Gellatly, Guy, 2007. "Innovation Capabilities: Technology Use, Productivity Growth and Business Performance: Evidence from Canadian Technology Surveys," The Canadian Economy in Transition 2007016e, Statistics Canada, Economic Analysis Division. [Downloadable!]
  10. Simona Iammarino & Francesca Sanna-Randaccio & Maria Savona, 2007. "The perception of obstacles to innovation. Multinational and domestic firms in Italy," Working Papers of BETA 2007-12, Bureau d'Economie Théorique et Appliquée, ULP, Strasbourg. [Downloadable!]
  11. 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. [Downloadable!]
  12. Lim, Ee Shiang & Shyamala, Nagaraj, 2007. "Obstacles to innovation : evidence from Malaysian manufacturing firms," MPRA Paper 18077, University Library of Munich, Germany. [Downloadable!]
  13. Baldwin, John R. & Sabourin, David, 2002. "Enhancing Food Safety and Productivity: Technology Use in the Canadian Food Processing Industry," Analytical Studies Branch Research Paper Series 2002168e, Statistics Canada, Analytical Studies Branch. [Downloadable!]
  14. Pablo D'Este & Simona Iammarino & Maria Savona & Nick von Tunzelmann, 2008. "What hampers innovation? Evidence from the UK CIS4," SPRU Electronic Working Paper Series 168, University of Sussex, SPRU - Science and Technology Policy Research. [Downloadable!]
  15. Baldwin, John R. & Brown, W. Mark & Vinodrai, Tara, 2001. "Dynamics of the Canadian Manufacturing Sector in Metropolitan and Rural Regions," Analytical Studies Branch Research Paper Series 2001169e, Statistics Canada, Analytical Studies Branch. [Downloadable!]
  16. Dominique Tourigny & Can Le, 2004. "Impediments to innovation faced by Canadian manufacturing firms," Economics of Innovation and New Technology, Taylor and Francis Journals, vol. 13(3), pages 217-250, April. [Downloadable!] (restricted)
  17. Agustí Segarra-Blasco & José García-Quevedo & Mercedes Teruel-Carrizosa, 2007. "Barriers to innovation and public policy in Catalonia," Working Papers 2007/6, Institut d'Economia de Barcelona (IEB). [Downloadable!]
    Other versions:
  18. Centre for the Study of Living Standards, 2005. "What Explains the Canada-US ICT Investment Intensity Gap?," CSLS Research Reports 2005-06, Centre for the Study of Living Standards. [Downloadable!]
  19. Vinodrai, Tara, 2001. "A Tale of Three Cities: The Dynamics of Manufacturing in Toronto, Montreal, and Vancouver, 1976-1997," Analytical Studies Branch Research Paper Series 2001177e, Statistics Canada, Analytical Studies Branch. [Downloadable!]
  20. Andrew Sharpe, 2005. "What Explains the Canada-US ICT Investment Gap?," International Productivity Monitor, Centre for the Study of Living Standards, vol. 11, pages 21-38, Fall. [Downloadable!]
  21. Elad Gafni, 2005. "The Diffusion and Adoption of Advanced Technologies in Canada: An Overview of the Issues," CSLS Research Reports 2005-05, Centre for the Study of Living Standards. [Downloadable!]
  22. Gellatly, Guy, 2000. "Differences in Innovator and Non-innovator Profiles: Small Establishments in Business Services," Analytical Studies Branch Research Paper Series 2000143e, Statistics Canada, Analytical Studies Branch. [Downloadable!]
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