Impact assessment of business innovation and growth support programs on firm performance in Canada using the CDM model

Description: This study examined the impact of federal business innovation and growth support (BIGS) programs on firm financial performance measured using revenue, profit and employment metrics. Using Statistics Canada’s Business Linkable File Environment data, the study observed the effects of BIGS on exporting versus non-exporting firms and Canadian- versus U.S.-owned firms from 2015 to 2020. Unlike previous studies that relied mainly on survey data, one significant aspect of this research was the use of a new dataset, enabling panel data structures and models to be employed. To assess the impact of BIGS and research and development spending on three interrelated measures of firm financial performance, the CDM (Crépon et al., 1998) framework was adopted.

Issue Number: 2024002

Frequency: Occasional