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Factors Affecting Biotechnology Innovation in Canada: Analysis of the 2001 Biotechnology Use and Development Survey

Author

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  • van Moorsel, Daryl
  • Cranfield, John A.L.
  • Sparling, David

Abstract

Advancement in biotechnology requires continued innovative activity by firms. To grow, biotechnology firms must understand the factors affecting their innovative activity. Such understanding also informs policy makers, and supports the development of policies promoting one's biotechnology sector. This study explores factors which determine innovative activity within the Canadian biotechnology industry. Innovative activity is measured as the natural log of the number of products/processes a firm has at different stages of the innovation spectrum. A model is developed to regress this measure on several determinants of innovation. Significant drivers of innovation include: collaborative arrangements, transfer of intellectual property, firm size and age, whether the firm was in the agricultural or human health biotechnology sectors and whether the firm focused on development or commercialization. Generally speaking, these factors all contributed to firms having more products/processes either under development, undergoing clinical trials or regulatory approval, or on the market.

Suggested Citation

  • 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.
  • Handle: RePEc:ags:uguewp:34121
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    File URL: http://purl.umn.edu/34121
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    References listed on IDEAS

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    1. Zvi Griliches, 1998. "Patent Statistics as Economic Indicators: A Survey," NBER Chapters,in: R&D and Productivity: The Econometric Evidence, pages 287-343 National Bureau of Economic Research, Inc.
    2. Baldwin, John R., 1997. "The Importance of Research and Development for Innovation in Small and Large Canadian Manufacturing Firms," Analytical Studies Branch Research Paper Series 1997107e, Statistics Canada, Analytical Studies Branch.
    3. Alfred Kleinknecht & Kees Van Montfort & Erik Brouwer, 2002. "The Non-Trivial Choice between Innovation Indicators," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 11(2), pages 109-121.
    4. Baldwin, John R. & Sabourin, David, 1999. "Innovative Activity in Canadian Food Processing Establishments: the Importance of Engineering Practices," Analytical Studies Branch Research Paper Series 1999101e, Statistics Canada, Analytical Studies Branch.
    5. Scherer, F M, 1982. "Inter-Industry Technology Flows and Productivity Growth," The Review of Economics and Statistics, MIT Press, vol. 64(4), pages 627-634, November.
    6. Cohen, Wesley M & Klepper, Steven, 1996. "Firm Size and the Nature of Innovation within Industries: The Case of Process and Product R&D," The Review of Economics and Statistics, MIT Press, vol. 78(2), pages 232-243, May.
    7. Pierre Mohnen & Pierre Therrien, 2002. "Comparing the Innovation Performance of Canadian Firms and those of Selected European Countries: An Econometric Analysis," CIRANO Working Papers 2002s-80, CIRANO.
    8. Najib Harabi, 2002. "The Impact of Vertical R&D Cooperation on Firm Innovation: An Empirical Investigation," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 11(2), pages 93-108.
    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.
    10. Traore, Namatie & Rose, Antoine, 2003. "Determinants of biotechnology utilization by the Canadian industry," Research Policy, Elsevier, vol. 32(10), pages 1719-1735, December.
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    Cited by:

    1. Gohar Nuhoff-Isakhanyan & Emiel F.M. Wubben & S.W.F. Omta, 2016. "Sustainability Benefits and Challenges of Inter-Organizational Collaboration in Bio-Based Business: A Systematic Literature Review," Sustainability, MDPI, Open Access Journal, vol. 8(4), pages 1-17, March.
    2. Roucan-Kane, Maud & Gray, Allan W. & Boehlje, Michael, 2011. "Approaches for Selecting Product Innovation Projects in U.S. Food and Agribusiness Companies," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association (IFAMA), vol. 14(4).
    3. Pant, Laxmi P., 2010. "Assessing Innovations in International Research and Development Practice," MERIT Working Papers 043, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    4. Cranfield, John A.L. & Herath, Deepananda P.B. & Henson, Spencer J. & Sparling, David, 2006. "An Analysis of Financing Innovation and Commercialization in Canada's Functional Food and Nutraceutical Sector," 2006 Annual meeting, July 23-26, Long Beach, CA 21196, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).

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