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

  • Elad Gafni

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    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.

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    File URL: http://www.csls.ca/reports/csls2005-05.pdf
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    Paper provided by Centre for the Study of Living Standards in its series CSLS Research Reports with number 2005-05.

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    Date of creation: May 2005
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    Handle: RePEc:sls:resrep:0505
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    1. Sabourin, David & Baldwin, John R., 1999. "Technology Adoption: A Comparison Between Canada and the United States," Analytical Studies Branch Research Paper Series 1998119e, Statistics Canada, Analytical Studies Branch.
    2. Sabourin, David & Baldwin, John R. & Diverty, Brent, 1995. "Technology Use and Industrial Transformation: Empirical Perspectives," Analytical Studies Branch Research Paper Series 1995075e, Statistics Canada, Analytical Studies Branch.
    3. Lin, Zhengxi & Baldwin, John R., 2001. "Impediments to Advanced Technology Adoption for Canadian Manufacturers," Analytical Studies Branch Research Paper Series 2001173e, Statistics Canada, Analytical Studies Branch.
    4. Sabourin, David & Baldwin, John R. & 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.
    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. 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.
    7. Beckstead, Desmond & Gellatly, Guy & Baldwin, John R., 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 1416-33, September.
    9. Bronwyn H. Hall, 2004. "Innovation and Diffusion," NBER Working Papers 10212, National Bureau of Economic Research, Inc.
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