Determinants of Product and Process Innovation in Canada's Dynamic Service Industries - ARCHIVED

This paper is an exploratory study to help us identify and characterize innovation practices in Canada's dynamic service industries. It uses logistical estimates to demonstrate that innovation in the services sector is not homogeneous. For each type of innovation 'product, process or both. there is a different business strategy. Small firms do more product innovation, and clients, along with fairs and exhibitions, appear to be the primary sources of information.

Product innovation is generally done by technical services industries. Process innovation does not seem to favour any particular sector but, understandably, the factors that have the most impact on this type of innovation are company flexibility and information from patent literature, consulting firms and internal management. The most complex strategy-for both product and process innovation-is associated with large firms in the communications and finance sub-sectors. This type of innovation has a larger number of significant factors than the other two types. Finally, this paper shows that there are differences among the forms of innovation and that these differences apply within individual sub-sectors.