Business start-ups and closures provide clues to innovation - ARCHIVED

A Statistics Canada study uses business demographics to learn about innovation and technological change and uncovers interesting patterns. Contrary to expectations, the author uncovered considerable volatility (start-ups and closures) in the service sector. The volatility rate for this sector was 31% compared with 23% for the manufacturing sector. Firms that do not innovate frequently are replaced by new ones that have new or improved products to offer or by those that employ more efficient methods of production and delivery.