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Comparing the Innovation Performance of Canadian Firms and those of Selected European Countries: An Econometric Analysis


  • Pierre Mohnen
  • Pierre Therrien


This paper follows on Therrien and Mohnen (2001). Here, we compare the innovation performance of manufacturing firms in Canada and four European countries - Germany, France, Ireland, and Spain - on the basis of an econometric model that identifies some of the determinants of the probability to innovate and of the intensity of innovation. We estimate jointly a probit for the incidence of innovation and a censored ordered probit for the intensity of innovation. The analysis is performed on the data from Statistics Canada's 1999 Innovation Survey and Eurostat's second Community Innovation Survey.Due to administrative constraints, data from Europe and Canada cannot be pooled together. From the estimates we compare and disentangle the observed and the expected innovation intensities in Canada and in Europe, using the framework developed by Mairesse and Mohnen (2002).Canada has a higher proportion of innovating firms but a lower share of innovative sales for its innovating firms. From the two effects combined we expect a typical Canadian firm to have a slightly higher share of innovative sales. The effects of firm size, cooperation in innovation, and government support make Canadian firms slightly more innovative than European firms, whereas the sectoral composition of output, the pressure of competition, the scope of innovation activities, and the novelty of innovation confer a slight advantage to Europe. Cette étude fait suite à celle de Therrien et Mohnen (2001). Cette fois-ci, nous comparons les performances en matière d'innovation des entreprises du Canada et de quatre pays européens - l'Allemagne, la France, l'Irlande et l'Espagne - à partir d'un modèle économétrique, où nous identifions quelques-uns des facteurs qui déterminent la probabilité d'innover et l'intensité d'innovation. Nous estimons conjointement un probit pour la probabilité d'innover et un probit ordonné pour l'intensité d'innover. Pour des raisons administratives, nous ne sommes pas en mesure d'empiler les données canadiennes et européennes. Ensuite, nous comparons les probabilités et les intensités d'innover observées et attendues en utilisant le cadre de décomposition développé par Mairesse et Mohnen (2002).Plus d'entreprises innovent au Canada que dans les quatre pays européens, mais parmi celles qui innovent les européennes ont un plus grand chiffre d'affaires en produits innovants. La taille des entreprises, la coopération en innovation et l'aide gouvernementale favorisent l'innovation au Canada, tandis que la composition sectorielle, la pression concurrentielle, le nombre d'activités innovantes et le degré de nouveauté des produits confèrent un léger avantage aux entreprises européennes de notre échantillon.

Suggested Citation

  • 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.
  • Handle: RePEc:cir:cirwor:2002s-80

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    References listed on IDEAS

    1. Jacques Mairesse & Pierre Mohnen, 2001. "To Be or Not To Be Innovative: An Exercise in Measurement," NBER Working Papers 8644, National Bureau of Economic Research, Inc.
    2. Hans Loof & Almas Heshmati, 2006. "On the relationship between innovation and performance: A sensitivity analysis," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 15(4-5), pages 317-344.
    3. Cohen, Wesley M & Levinthal, Daniel A, 1989. "Innovation and Learning: The Two Faces of R&D," Economic Journal, Royal Economic Society, vol. 99(397), pages 569-596, September.
    4. 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.
    5. Scott Stern & Michael E. Porter & Jeffrey L. Furman, 2000. "The Determinants of National Innovative Capacity," NBER Working Papers 7876, National Bureau of Economic Research, Inc.
    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. repec:crs:wpaper:9833 is not listed on IDEAS
    8. 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.
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    Cited by:

    1. Peters, Bettina & Lööf, Hans & Janz, Norbert, 2003. "Firm Level Innovation and Productivity: Is there a Common Story Across Countries?," ZEW Discussion Papers 03-26, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
    2. 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.
    3. Mickey Folkeringa & Andre van Stel & Joris Meijaard, 2005. "Innovation, strategic renewal and its effect on small firm performance," Papers on Entrepreneurship, Growth and Public Policy 2005-36, Max Planck Institute of Economics, Entrepreneurship, Growth and Public Policy Group.
    4. Wojciech Grabowski & Krzysztof Szczygielski & M. Teoman Pamukçu & Sinan Tandogan, 2013. "Does Government Support for Private Innovation Matter? Firm Level Evidence from Turkey and Poland," CASE Network E-briefs 3, CASE-Center for Social and Economic Research.
    5. Frédérique Savignac, 2006. "The impact of financial constraints on innovation : evidence from French manufacturing firms," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-00115717, HAL.
    6. Brian Cozzarin, 2004. "Innovation quality and manufacturing firms' performance in Canada," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 13(3), pages 199-216.
    7. Pierre Mohnen & Pierre Therrien, 2005. "Comparing the Innovation Performance in Canadian, French and German Manufacturing Enterprises," CIRANO Working Papers 2005s-33, CIRANO.
    8. Richard Dion & Robert Fay, 2008. "Understanding Productivity: A Review of Recent Technical Research," Discussion Papers 08-3, Bank of Canada.

    More about this item


    Innovation surveys; innovativeness; international comparison; Enquêtes innovation; innovativité; comparaison internationale;

    JEL classification:

    • O - Economic Development, Innovation, Technological Change, and Growth

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