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

  • Sabourin, David
  • Baldwin, John R.

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.

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File URL: http://www5.statcan.gc.ca/olc-cel/olc.action?ObjId=11F0019M1999101&ObjType=46&lang=en&limit=0
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Paper provided by Statistics Canada, Analytical Studies Branch in its series Analytical Studies Branch Research Paper Series with number 1999101e.

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Date of creation: 25 Nov 1999
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Handle: RePEc:stc:stcp3e:1999101e
Contact details of provider: Postal: Tunney's Pasture, Ottawa, Ontario, K1A 0T6
Web page: http://www.statcan.gc.ca

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  1. 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.
  2. repec:fth:inseep:9833 is not listed on IDEAS
  3. 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.
  4. 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).
  5. Scherer, F M, 1992. "Schumpeter and Plausible Capitalism," Journal of Economic Literature, American Economic Association, vol. 30(3), pages 1416-33, September.
  6. Sabourin, David & Baldwin, John R. & Hanel, Peter, 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.
  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. Cohen, Wesley M & Klepper, Steven, 1996. "A Reprise of Size and R&D," Economic Journal, Royal Economic Society, vol. 106(437), pages 925-51, July.
  9. 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, number stcb4e, December.
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