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Innovation and Productivity: Summary Results for Canadian Manufacturing Establishments

  • Pierre Therrien

    ()

  • Petr Hanel

    ()

Lagging innovation performance is seen as a key factor explaining weak productivity growth in Canada. This article uses data from the Canadian Survey of Innovation 2005 and the Annual Survey of Manufactures and Logging (ASML) to estimate an econometric model linking innovation and productivity in manufacturing firms. Our main findings are that firms with higher innovation output (measured by innovation sales per employee, i.e. sales of new and improved products per employee) achieve higher labour productivity, even when size of firm, intensity of human and physical capital, and labour productivity at the beginning of the period are taken into account.

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File URL: http://www.csls.ca/ipm/22/IPM-22-Therrien-Hanel.pdf
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Article provided by Centre for the Study of Living Standards in its journal International Productivity Monitor.

Volume (Year): 22 (2011)
Issue (Month): (Fall)
Pages: 11-28

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Handle: RePEc:sls:ipmsls:v:22:y:2011:2
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  1. repec:fth:inseep:9833 is not listed on IDEAS
  2. James R. Tybout, 2001. "Plant- and Firm-Level Evidence on "New" Trade Theories," NBER Working Papers 8418, National Bureau of Economic Research, Inc.
  3. Czarnitzki, Dirk & Hanel, Petr & Rosa, Julio Miguel, 2011. "Evaluating the impact of R&D tax credits on innovation: A microeconometric study on Canadian firms," Research Policy, Elsevier, vol. 40(2), pages 217-229, March.
  4. John Baldwin & Wulong Gu, 2003. "Export-market participation and productivity performance in Canadian manufacturing," Canadian Journal of Economics, Canadian Economics Association, vol. 36(3), pages 634-657, August.
  5. Rachel Griffith & Elena Huergo & Jacques Mairesse & Bettina Peters, 2006. "Innovation and Productivity Across Four European Countries," Oxford Review of Economic Policy, Oxford University Press, vol. 22(4), pages 483-498, Winter.
  6. Bruno Crepon & Emmanuel Duguet & Jacques Mairesse, 1998. "Research, Innovation And Productivity: An Econometric Analysis At The Firm Level," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 7(2), pages 115-158.
  7. Jan De Loecker, 2004. "Do Exports Generate Higher Productivity? Evidence from Slovenia," LICOS Discussion Papers 15104, LICOS - Centre for Institutions and Economic Performance, KU Leuven.
  8. Gu, Wulong & Baldwin, John R., 2004. "Innovation, Survival and Performance of Canadian Manufacturing Plants," Economic Analysis (EA) Research Paper Series 2004022e, Statistics Canada, Analytical Studies Branch.
  9. repec:cup:cbooks:9780521037136 is not listed on IDEAS
  10. Petr Hanel, 2007. "Productivity and innovation: an overview of the issues," Cahiers de recherche 07-22, Departement d'Economique de la Faculte d'administration à l'Universite de Sherbrooke.
  11. Petr Hanel, 2000. "R&D, Interindustry and International Technology Spillovers and the Total Factor Productivity Growth of Manufacturing Industries in Canada, 1974-1989," Economic Systems Research, Taylor & Francis Journals, vol. 12(3), pages 345-361.
  12. Sascha O. Becker & Peter Egger, 2007. "Endogenous Product versus Process Innovation and a Firm’s Propensity to Export," CESifo Working Paper Series 1906, CESifo Group Munich.
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