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Innovative Activity in Canadian Food Processing Establishments: the Importance of Engineering Practices

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  • Baldwin, John R.
  • Sabourin, David

Abstract

This paper examines the factors contributing to innovative activity in the Canadian food processing sector. The study first focuses on the importance of research and development activity and advanced business practices used by production and engineering departments. Second, it examines the extent to which larger firm size and less competition serve to stimulate competition-the so-called Schumpeterian hypothesis. Third, the effect of the nationality of a firm on innovation is investigated. Finally, industry effects are examined. The paper finds that business practices are significantly related to the probability that a firm is innovative. This is also the case for R&D. Size effects are significant, particularly for process innovations. Elsewhere, their effect is greatly diminished once business practices are included. Foreign ownership is significant only for process innovations and not for product innovations. Competition matters, more so for product than for process innovations. Establishments in the 'other' food products industry tend to lead when it comes to innovation, whereas fish product plants tend to lag.

Suggested Citation

  • 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.
  • Handle: RePEc:stc:stcp3e:1999101e
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    References listed on IDEAS

    as
    1. Baldwin, John R. & Sabourin, David & West, Donald, 1999. "Advanced Technology in the Canadian Food Industry," Advanced Technology in the Canadian Food Industry, Statistics Canada, Economic Analysis Division, number stcb4e, December.
    2. Crepon, B. & Duguet, E. & Mairesse, J., 1998. "Research Investment, Innovation and Productivity: An Econometric Analysis at the Firm Level," Papiers d'Economie Mathématique et Applications 98.15, Université Panthéon-Sorbonne (Paris 1).
    3. Baldwin, John R. & Hanel, Peter & Sabourin, David, 2000. "Determinants of Innovative Activity in Canadian Manufacturing Firms: The Role of Intellectual Property Rights," Analytical Studies Branch Research Paper Series 2000122e, Statistics Canada, Analytical Studies Branch.
    4. Kenneth Arrow, 1962. "Economic Welfare and the Allocation of Resources for Invention," NBER Chapters,in: The Rate and Direction of Inventive Activity: Economic and Social Factors, pages 609-626 National Bureau of Economic Research, Inc.
    5. Cohen, Wesley M & Klepper, Steven, 1996. "A Reprise of Size and R&D," Economic Journal, Royal Economic Society, vol. 106(437), pages 925-951, July.
    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. 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.
    8. Scherer, F M, 1992. "Schumpeter and Plausible Capitalism," Journal of Economic Literature, American Economic Association, vol. 30(3), pages 1416-1433, September.
    9. repec:crs:wpaper:9833 is not listed on IDEAS
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    Citations

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    Cited by:

    1. Baldwin, John R. & Sabourin, David, 2001. "Impact of the Adoption of Advanced Information and Communication Technologies on Firm Performance in the Canadian Manufacturing Sector," Analytical Studies Branch Research Paper Series 2001174e, Statistics Canada, Analytical Studies Branch.
    2. Baldwin, John R. & Gellatly, Guy, 2006. "Capacites d'innovation : le capital de savoir, gage de survie et de croissance des entreprises," L'economie canadienne en transition 2006013f, Statistics Canada, Division de l'analyse economique.
    3. Steiner, Bodo & Ali, Jolene, 2009. "Regional food clusters and government support for clustering: Evidence for a ‘dynamic food innovation cluster’ in Alberta, Canada?," MPRA Paper 26251, University Library of Munich, Germany.
    4. 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.
    5. Baldwin, John R. & Gellatly, Guy, 2007. "Global Links: Multinationals in Canada: An Overview of Research at Statistics Canada," The Canadian Economy in Transition 2007014e, Statistics Canada, Economic Analysis Division.
    6. Baldwin, John R. & Sabourin, David & Smith, David, 2003. "Effet de l'utilisation des technologies de pointe sur le rendement des entreprises du secteur canadien de la transformation des aliments," Serie de documents de recherche sur l'analyse economique (AE) 2003012f, Statistics Canada, Direction des etudes analytiques.
    7. Baldwin, John R. & Gellatly, Guy, 2006. "Innovation Capabilities: The Knowledge Capital Behind the Survival and Growth of Firms," The Canadian Economy in Transition 2006013e, Statistics Canada, Economic Analysis Division.
    8. 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.
    9. Baldwin, John R. & Sabourin, David, 2001. "Impact de l'adoption des technologies de l'information et des communications de pointe sur la performance des entreprises du secteur de la fabrication au Canada," Direction des etudes analytiques : documents de recherche 2001174f, Statistics Canada, Direction des etudes analytiques.

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