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Innovation, Training and Success

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  • Baldwin, John R.
  • Yates, Janice

Abstract

This paper describes the evidence that several Statistics Canada studies have developed on the importance of innovation to growth and the need for highly skilled workers in the innovation process. Rather than focusing on broad industry aggregates as is often done, we concentrate our attention on firms and their behaviour. This allows us to investigate the connection between the success of businesses and the strategies that they pursue. We find that the more successful firms attribute their success to having developed competencies in a wide range of areas-but that the common factor that most frequently distinguishes faster from slower growing firms is innovation. Innovators in turn place greater emphasis on training and acquiring skilled workers. The studies also show that the emphasis on highly skilled workers varies across industries. In goods industries, a training strategy complements an innovation strategy that focuses on R&D, the adoption of new advanced technologies, or the development of new processes. Small firms that are innovative train their workers when they introduce new machinery and equipment. In the service sector, the innovation strategy relies less on new capital and more on new skills embodied in the workforce. Here there is evidence that a training strategy, by itself, has more impact on the success of a firm-probably because it is more likely to be the innovation strategy of the firm.

Suggested Citation

  • Baldwin, John R. & Yates, Janice, 1999. "Innovation, Training and Success," Analytical Studies Branch Research Paper Series 1999137e, Statistics Canada, Analytical Studies Branch.
  • Handle: RePEc:stc:stcp3e:1999137e
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    File URL: http://www5.statcan.gc.ca/olc-cel/olc.action?ObjId=11F0019M1999137&ObjType=46&lang=en&limit=0
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    References listed on IDEAS

    as
    1. Baldwin, John R. & Gellatly, Guy, 1998. "Are There High-tech Industries or Only High-tech Firms? Evidence from New Technology-based Firms," Analytical Studies Branch Research Paper Series 1998120e, Statistics Canada, Analytical Studies Branch.
    2. Baldwin, John R. & Johnson, Joanne, 1995. "Business Strategies in Innovative and Non-innovative Firms in Canada," Analytical Studies Branch Research Paper Series 1995073e, Statistics Canada, Analytical Studies Branch.
    3. Klepper, Steven, 1996. "Entry, Exit, Growth, and Innovation over the Product Life Cycle," American Economic Review, American Economic Association, vol. 86(3), pages 562-583, June.
    4. Baldwin, John R. & Johnson, Joanne, 1998. "Differences in Strategies and Performances of Different Types of Innovators," Analytical Studies Branch Research Paper Series 1997102e, Statistics Canada, Analytical Studies Branch.
    5. 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.
    6. Baldwin, John R. & Diverty, Brent, 1995. "Advanced Technology Use in Canadian Manufacturing Establishments," Analytical Studies Branch Research Paper Series 1995085e, Statistics Canada, Analytical Studies Branch.
    7. Baldwin,John R. & Gorecki,Paul, 1998. "The Dynamics of Industrial Competition," Cambridge Books, Cambridge University Press, number 9780521633574.
    8. 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.
    9. Klepper, Steven & Miller, John H., 1995. "Entry, exit, and shakeouts in the United States in new manufactured products," International Journal of Industrial Organization, Elsevier, vol. 13(4), pages 567-591, December.
    10. Baldwin, John R., 1995. "Innovation: The Key to Success in Small Firms," Analytical Studies Branch Research Paper Series 1995076e, Statistics Canada, Analytical Studies Branch.
    11. Baldwin, John R., 2000. "Innovation and Training in New Firms," Analytical Studies Branch Research Paper Series 2000123e, Statistics Canada, Analytical Studies Branch.
    12. Gort, Michael & Klepper, Steven, 1982. "Time Paths in the Diffusion of Product Innovations," Economic Journal, Royal Economic Society, vol. 92(367), pages 630-653, September.
    13. 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.
    14. Gellatly, Guy, 2000. "Differences in Innovator and Non-innovator Profiles: Small Establishments in Business Services," Analytical Studies Branch Research Paper Series 2000143e, Statistics Canada, Analytical Studies Branch.
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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. Sergio Scicchitano, 2010. "Complementarity between heterogeneous human capital and R&D: can job-training avoid low development traps?," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 37(4), pages 361-380, November.
    3. Gellatly, Guy, 2000. "Differences in Innovator and Non-innovator Profiles: Small Establishments in Business Services," Analytical Studies Branch Research Paper Series 2000143e, Statistics Canada, Analytical Studies Branch.
    4. Danny García, 2007. "Innovation and Growth: A Survey of the Literature and a Case Study for Latin America," REVISTA ECOS DE ECONOMÍA, UNIVERSIDAD EAFIT, October.
    5. Baldwin, John & Lin, Zhengxi, 2002. "Impediments to advanced technology adoption for Canadian manufacturers," Research Policy, Elsevier, vol. 31(1), pages 1-18, January.
    6. Yanick Labrie & Claude Montmarquette, 2005. "La formation qualifiante et transférable en milieu de travail," CIRANO Project Reports 2005rp-04, CIRANO.
    7. repec:ebl:ecbull:v:15:y:2007:i:2:p:1-11 is not listed on IDEAS
    8. Sabourin, David, 2001. "Skill Shortages and Advanced Technology Adoption," Analytical Studies Branch Research Paper Series 2001175e, Statistics Canada, Analytical Studies Branch.
    9. Isabel Diéguez & Ana Cantorna & Ana Canto, 2005. "Organizational Training In Manufacturing Firms And Advanced Manufacturing Technologies," Portuguese Journal of Management Studies, ISEG, Universidade de Lisboa, vol. 0(1), pages 57-70.
    10. Baldwin, John R. & Rama, Ed & Sabourin, David, 1999. "Growth of Advanced Technology Use in Canadian Manufacturing During the 1990's," Analytical Studies Branch Research Paper Series 1999105e, Statistics Canada, Analytical Studies Branch.

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