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  • Articles and reports: 11F0019M2000151
    Geography: Canada
    Description:

    This paper examines whether new views of the multinational that see these firms as decentralizing research and development (R&D) activities abroad to exploit local competencies accord with the activities of multinationals in Canada. The paper describes the innovation regime of multinational firms in Canada by examining the differences between foreign- and domestically owned firms. It focuses on the extent to which R&D is used; the type of R&D activity; the importance of R&D relative to other sources of innovative ideas; whether the use of these other ideas indicates that multinationals are closely tied into local innovation networks; the intensity of innovation; and the use that is made of intellectual property rights to protect innovations from being copied by others.

    We find that, far from being passively dependent on R&D from their parents, foreign-owned firms in Canada are more active in R&D than the population of Canadian-owned firms. They are also more often involved in R&D collaboration projects both abroad and in Canada. As expected, foreign subsidiaries enjoy the advantage of accessing technology from their parent and sister companies. While multinationals are more closely tied into a network of related firms for innovative ideas than are domestically owned firms, their local R&D unit is a more important source of information for innovation than are these inter-firm links. Surprisingly, foreign subsidiaries also more frequently report that they are using technology from unrelated firms. Moreover, the multinational is just as likely to develop links into a local university and other local innovation consortia as are domestically owned firms. This evidence indicates that multinationals in Canada are not, on the whole, operating subsidiaries whose scientific development capabilities are truncated - at least not in comparison to domestically owned firms.

    A comparison of the extent and impact of innovation activity of domestically and foreign-owned firms shows that foreign-owned firms innovate in all sectors more frequently than Canadian-owned companies in almost all size categories. They are also more likely to introduce world-first rather than more imitative innovations. Their superiority is most pronounced in the consumer goods sector. Finally, foreign-owned firms are more likely to protect their innovations with patent protection.

    The paper also compares foreign subsidiaries to Canadian corporations that have an international orientation. These additional comparisons show that the two groups of multinationals are quite similar, both with regards to the likelihood that they conduct some form of R&D and that they introduce innovations. These results indicate that it is as much the degree of globalization that the nationality of ownership that affects the degree of innovativeness.

    Overall, the survey results suggest that foreign-owned firms make a significant contribution to technological progress and innovation in Canadian industry.

    Release date: 2000-06-27

  • Articles and reports: 88-003-X20000025116
    Geography: Canada
    Description:

    Innovation is the basis for progress and the key to success for many organizations. This article examines the effect of perceived barriers to innovation by sector. For instance, the financial services sector is cautious about new technological developments due to feasibility risks and markets outlets.

    Release date: 2000-06-01

  • Articles and reports: 88-003-X20000025118
    Geography: Canada
    Description:

    The number of personnel in scientific and technological (S&T) activities in the federal government has declined by 15% since 1990-1991.

    Release date: 2000-06-01

  • Articles and reports: 88-003-X20000025120
    Geography: Canada
    Description:

    Over two-thirds of Canada's gross domestic product (GDP) and three-quarters of employment result from service activity, and close to 60% of the measured reserach and development is performed in the service sector.

    Release date: 2000-06-01

  • Articles and reports: 88-003-X20000025124
    Geography: Canada
    Description:

    The federal government is an essential player S&T activities in Canada in which it invests over five billion dollars each year. In addition to this direct investment, an additional $1.3 billion of assistance is provided through the federal R&D tax incentive program. This article examines regional differences in science and technology tax regimes in Canada.

    Release date: 2000-06-01

  • Articles and reports: 88-003-X20000025126
    Geography: Canada
    Description:

    To understand the relationship between S&T skills and the labour market Statistics Canada has produced a study that provides insight into where S&T skills are deployed. As a group, the number of persons with S&T degrees, pegged at 5 million in 1996, has been growing five times faster than the number of non S&T degree holders. The highest concentrations of S&T graduates are in health (52.0% have S&T degrees), business services (38.1%), and construction (34.3%).

    Release date: 2000-06-01

  • Articles and reports: 11F0019M2000122
    Geography: Canada
    Description:

    This paper examines how several factors contribute to innovative activity in the Canadian manufacturing sector. First, it investigates the extent to which intellectual property right protection stimulates innovation. Second, it examines the contribution that R&D makes to innovation. Third, it considers the importance of various competencies in the area of marketing, human resource, technology and production to the innovation process. Fourth, it examines the extent to which a larger firm size and less competition serve to stimulate competition-the so-called Schumpeterian hypothesis. Fifth, the effect of the nationality of a firm on innovation is also investigated. Finally, the paper examines the effect of an industry's environment on a firm's ability to innovate.

    Several findings are of note. First, the relationship between innovation and patent use is found to be much stronger going from innovation to patent use than from patent use to innovation. Firms that innovate take out patents; but firms and industries that make more intensive use of patents do not tend to produce more innovations. Second, while R&D is important, developing capabilities in other areas, such as technological competency and marketing, is also important. Third, size effects are significant. The largest firms tend to be more innovative. As for competition, intermediate levels of competition are the most conducive to innovation. Fourth, foreign-controlled firms are not significantly more likely to innovate than domestic-controlled firms once differences in competencies have been taken into account. Fifth, the scientific infrastructure provided by university research is a significant determinant of innovation.

    Release date: 2000-03-07

  • Articles and reports: 11F0019M2000143
    Geography: Canada
    Description:

    This paper explores differences between innovative and non-innovative establishments in business service industries. It focuses on small establishments that supply core technical inputs to other firms: establishments in computer and related services, engineering, and other scientific and technical services.

    The analysis begins by examining the incidence of innovation within the small firm population. Forty percent of small businesses report introducing new or improved products, processes or organizational forms. Among these businesses, product innovation dominates over process or organizational change. A majority of these establishments reveal an ongoing commitment to innovation programs by introducing innovations on a regular basis. By contrast, businesses that do not introduce new or improved products, processes or organizational methods reveal little supporting evidence of innovation activity.

    The paper then investigates differences in strategic intensity between innovative and non-innovative businesses. Innovators attach greater importance to financial management and capital acquisition. Innovators also place more emphasis on recruiting skilled labour and on promoting incentive compensation. These distinctions are sensible - among small firms in R&D-intensive industries, financing and human resource competencies play a critical role in the innovation process.

    A final section examines whether the obstacles to innovation differ between innovators and non-innovators. Innovators are more likely to report difficulties related to market success, imitation, and skill restrictions. Evidence of learning-by-doing is more apparent within a multivariate framework. The probability of encountering risk-related obstacles and input restrictions is higher among establishments that engage in R&D and use intellectual property rights, both key elements of the innovation process. Many obstacles to innovation are also more apparent for businesses that stress financing, marketing, production or human resource strategies.

    Release date: 2000-01-25

  • Articles and reports: 11F0019M2000127
    Geography: Canada
    Description:

    In studies of business innovation, the term innovation process is used to describe (i) the array of sources and objectives that culminate in the act of innovation, (ii) the set of market effects that result from innovation, and (iii) the obstacles that firms encounter when pursuing innovation strategies. An examination of the innovation process is thus designed to bring about a more comprehensive understanding of the characteristics that innovative firms share, as well as of those characteristics that set innovators apart from other businesses. The Survey of Innovation, 1996 examined innovation in three dynamic service industries: communications, financial services, and technical business services.

    This paper explores the principal findings to emerge from the Survey of Innovation, 1996. Two themes are apparent. In the first instance, many elements of the innovation process are common to all the service industries studied, such as an emphasis on product innovation, a strong customer orientation, and a commitment to service quality. Beyond these common elements, however, differences in competitive pressures across these industries serve to engender important differences in innovation strategies. Accordingly, much of what we can ultimately learn about the innovation process occurs at the industry level.

    Release date: 2000-01-19

  • Articles and reports: 88-003-X19990025340
    Geography: Canada
    Description:

    In 1999, the federal government expects to fund 19.4% of the R&D in Canada. Less and less of the government-funded R&D is taking place in government labs. Although overall spending on R&D will increase from $3.5 billion to $4.0 billion, the share of this going to the government research has dropped from 59% to 52%.

    Release date: 2000-01-17
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  • Articles and reports: 88-003-X19990025343
    Geography: Canada
    Description:

    Gross domestic product expenditures on R&D (GERD) for 1999 increased by 3.5% to $14.9 billion over the previous year. Despite this increase, the proportion of GDP devoted to R&D (1.6%) is still among the lowest of the G-7 countries.

    Release date: 2000-01-17

  • Articles and reports: 88-003-X19990025344
    Geography: Canada
    Description:

    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.

    Release date: 2000-01-17

  • Articles and reports: 88-003-X19990025345
    Geography: Canada
    Description:

    Some analysts suggest that biotechnology may trigger a revolution equal to the one prompted by information technology. Various sectors of Canadian industry are already actively using biotechnologies for purposes ranging from research and development to pollution control. Many still see obstacles to adopting new biotechnologies including lack of information and government regulation.

    Release date: 2000-01-17
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