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The Diffusion and Adoption of Advanced Technologies in Canada: An Overview of the Issues

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  • Elad Gafni

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Abstract

The adoption of advanced technologies is a means of fostering productivity improvement. Many theories seek to explain the process of advanced technology diffusion and adoption. Canadian firms generally trail their U.S. counterparts in the adoption of advanced technology. There are many critical gaps in our knowledge and understanding of technological diffusion in Canada. Key gaps include the identification of leading and lagging industries in terms of adoption; key barriers to technological diffusion in Canada including economic-policy-related barriers; appropriate direct policy interventions to overcome specific barriers; the impact of increasing globalization and the economic ascendancy of the large developing countries on diffusion in Canada; and specific challenges small and medium enterprises face in adopting technology. Another issue requiring more research is whether strong R&D performance is a prerequisite for the broad diffusion of technologies. Possible tradeoffs between supporting R&D and supporting diffusion in the presence of limited public funds to promote innovation merit discussion.

Suggested Citation

  • 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.
  • Handle: RePEc:sls:resrep:0505
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    File URL: http://www.csls.ca/reports/csls2005-05.pdf
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    References listed on IDEAS

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    1. Baldwin, John R. & Sabourin, David & Smith, David, 2003. "Impact of Advanced Technology Use on Firm Performance in the Canadian Food Processing Sector," Economic Analysis (EA) Research Paper Series 2003012e, Statistics Canada, Analytical Studies Branch.
    2. John R. Baldwin & David Sabourin, 2002. "Advanced technology use and firm performance in Canadian manufacturing in the 1990s," Industrial and Corporate Change, Oxford University Press, vol. 11(4), pages 761-789, August.
    3. Bronwyn H. Hall, 2004. "Innovation and Diffusion," NBER Working Papers 10212, National Bureau of Economic Research, Inc.
    4. Baldwin, John & Lin, Zhengxi, 2002. "Impediments to advanced technology adoption for Canadian manufacturers," Research Policy, Elsevier, vol. 31(1), pages 1-18, January.
    5. Erik Brynjolfsson & Lorin M. Hitt, 2000. "Beyond Computation: Information Technology, Organizational Transformation and Business Performance," Journal of Economic Perspectives, American Economic Association, vol. 14(4), pages 23-48, Fall.
    6. 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.
    7. Baldwin, John R. & Beckstead, Desmond & Gellatly, Guy, 2005. "Canada's Investments in Science and Innovation: Is the Existing Concept of Research and Development Sufficient?," Economic Analysis (EA) Research Paper Series 2005032e, Statistics Canada, Analytical Studies Branch.
    8. Scherer, F M, 1992. "Schumpeter and Plausible Capitalism," Journal of Economic Literature, American Economic Association, vol. 30(3), pages 1416-1433, September.
    9. 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.
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    Cited by:

    1. 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.
    2. Andrew Sharpe, 2007. "Lessons for Canada from International Productivity Experience," International Productivity Monitor, Centre for the Study of Living Standards, vol. 14, pages 20-37, Spring.
    3. 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.

    More about this item

    Keywords

    Diffusion; Adoption; Technologies; Technological diffusion; Innovation; Research and Development; R&D; Advanced technology; Technological competitiveness;

    JEL classification:

    • O00 - Economic Development, Innovation, Technological Change, and Growth - - General - - - General
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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