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  • Articles and reports: 11F0019M2020006
    Description:

    This paper examines the role of firm characteristics in accounting for the between-firm average employment earnings dispersion in the Canadian business sector between 2002 and 2015. It uses two decomposition methods to analyze the level of and changes in the between-firm average employment earnings dispersion by firm characteristics, such as productivity, globalization status (importing, exporting, foreign ownership), technology intensity, firm size, firm age, industry and geographic region.

    Release date: 2020-02-20

  • Articles and reports: 11-626-X2019012
    Description:

    This Economic Insights article presents estimates of the nominal output of foreign-owned multinationals operating in different sectors of Canada’s economy. It examines changes in the value added of foreign majority-owned affiliates, highlighting contributions by country of control. Estimates are examined separately for affiliates operating in resource, manufacturing and service industries. Developed by the Canadian Economic Accounts, the new data summarized in this article are part of a series of projects designed to provide more detailed information on the global dimensions of Canada’s economy. Annual estimates of the value added of foreign-owned affiliates are currently available from 2010 to 2016.

    Release date: 2019-06-25

  • Articles and reports: 11-621-M2019003
    Description:

    This paper aims to provide new details on foreign control of corporations in Canada, with a focus on Asia. New details are presented across five industry breakdowns: manufacturing, distributive trade, financial services, resources and mining, and a residual category which includes a composite of all remaining corporate sectors in the Canadian economy.

    Release date: 2019-06-11

  • Articles and reports: 61-220-X2016001
    Description:

    This report is a special release intended to highlight new insights into the extent of foreign control in the Canadian corporate economy from 2007 to 2016. It illustrates changes in foreign control by macro-region and country for financial and non-financial industry groupings.

    Release date: 2018-08-01

  • Articles and reports: 11F0019M2016387
    Description:

    The paper investigates recent changes in the importance of foreign ownership in Canadian manufacturing in the 2000s, and also compares these changes to those in the previous decades from 1973 to 1999. The importance of foreign firms in manufacturing is measured by the share of output under foreign control, and its changes are examined at different levels: aggregate, sector and industry.

    Release date: 2017-10-30

  • Articles and reports: 13-605-X201500714220
    Description:

    Foreign Direct Investment (FDI) - both Canadian Direct Investment Abroad (CDIA) and Foreign Direct Investment in Canada (FDIC) - is a useful indicator of Canada’s level of economic globalization, allowing some insight on how interrelated our economic infrastructure is with jurisdictions in the rest of the world. These data provide information on the first level of connectivity of international inter-corporate relationships, which are closely related to trade and fragmented global production-distribution.

    Foreign Affiliate Statistics are an extension of statistics on Foreign Direction Investment. They provide additional insight of the effect on economic agents in national economies in terms of earnings, productivity, employment, trade and foreign exposures resulting from an increasingly inter-connected and integrated global economy. Inward Foreign Affiliates Statistics (FAS) describe the activities as well as financial positions of Majority-Owned Domestic Affiliates (MODAs), a subset of Canadian direct investment enterprises and their consolidated subsidiaries operating in the Canadian economy. FAS are derived from international FDI concepts and frameworks. Statistics Canada’s Inward Foreign Affiliate and Trade Statistics program is closely related to expanded estimates of outward FAS, described in a separate paper. Both inward and outward FAS are part of, and this work lays the groundwork for, the development and release of a broader set of data on the Activities of Multi-National Enterprises (AMNE). This paper presents some data development work on inward foreign affiliate statistics that is a step towards shedding light on some of these issues.

    This paper found that MODAs account for a significant share of assets, operating revenues and employment in the Canadian economy. Furthermore, MODAs assumed even higher shares of exports and imports of goods and services.

    Release date: 2015-09-02

  • Articles and reports: 11F0027M2010060
    Geography: Canada
    Description:

    This paper asks whether synergies or managerial discipline operates in different ways across small versus large plants to affect the likelihood of mergers. Our findings indicate that those characteristics which provide the type of synergies upon which ownership changes rely are important factors leading to plant-ownership changes across most size classes. The magnitudes, however, are different across plant-size classes, with synergies generally being more important in larger plants.

    Foreign plants in all size classes are more likely to be taken over. The effective rates of control change differ much more in the small than in the larger size classes. Compared to domestic plants, multinational plants in the smaller size classes contain relatively more of the type of intangible capital that makes them attractive vehicles for the transmission of new knowledge via takeover.

    Release date: 2010-02-25

  • Articles and reports: 11F0027M2009056
    Geography: Canada
    Description:

    This paper examines the characteristics of plants in the manufacturing sector undergoing changes in ownership to further our understanding of the underlying causes of mergers and acquisitions. Previous Canadian studies (Baldwin 1995; Baldwin and Caves 1991) compare the performance of merged plants at the beginning and the end of the 1970s. This paper examines annual changes that occurred over the 1970s, 1980s, and 1990s to provide a longer-run perspective. In doing so, it outlines the amount of change taking place (both the number of plants affected and the share of employment) and the characteristics of plants that led to their takeover. Differences between foreign and domestic takeovers are also examined.

    Release date: 2009-06-04

  • Articles and reports: 11F0027M2008053
    Geography: Canada
    Description:

    This paper examines firm turnover and productivity growth in the Canadian retail trade sector. Firm turnover occurs as the competitive process shifts market share from exiting firms and existing firms that contracted to entering firms and existing firms that expanded. There is considerably more firm turnover in the retail sector than in the manufacturing sector and more of it comes from entry and exit. Moreover, contrary to the manufacturing sector where only part of overall productivity growth comes from firm turnover and the re-allocation of resources from the less to the more productive, all of the aggregate productivity growth comes from this source in the retail sector. This suggests that the much-discussed Wal-Mart effect on retail sector productivity mainly comes from the Wal-Mart-created competitive pressure that shifts market share from exitors and declining incumbents to entrants and growing incumbents. Foreign-controlled firms contributed 30% of labour productivity growth and 45% of multifactor productivity growth in the retail trade sector in the period from 1984 to 1996, which are mainly due to the entry of foreign-controlled firms and expansion of more productive foreign-controlled existing firms.

    Release date: 2008-12-08

  • Articles and reports: 11-622-M2007014
    Geography: Canada
    Description:

    The paper's main objective is to provide a concise synthesis of a wide array of data and research on multinationals originating in Statistics Canada, focusing on both historical and current studies.

    Chapter 2 discusses the macroeconomic contribution of foreign multinationals, focusing on two leading indicators of foreign multinational activity, foreign control and foreign direct investment. This chapter also describes studies that evaluate the contribution that foreign-controlled companies make to aggregate trade flows, linking changes in multinational trade intensity to the strategic reorganization of their production activities.

    Chapter 3 concentrates on the strategies and activities of foreign multinationals that are relevant to ongoing debates over whether the presence of foreign multinationals promotes, or hampers, Canada's industrial competitiveness. This chapter first examines evidence that domestic and foreign firms respond differently to domestic market conditions. Second, it asks whether foreign firms compete in different ways than domestic firms do. Third, it examines the relative emphasis that foreign multinationals place on innovation and technology practices, and reports on the relationship between these activities and observable market outcomes. Fourth, it reports on the contribution that foreign-controlled firms make to productivity growth. Fifth, it discusses new research that focuses on the relationship between foreign ownership and head-office employment. Studies in these areas speak directly to the issue of whether foreign multinationals truncate or develop their corporate activities in host markets.

    Chapter 4 focuses on studies that examine the foreign activities of Canadian-owned multinationals and how their domestic plants compare to foreign-controlled plants operating in Canada.

    Chapter 5 offers an appraisal of Statistics Canada's research on multinationals.

    Release date: 2007-11-13
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  • Articles and reports: 88F0006X2002010
    Description:

    This document presents historical tables displaying federal government expenditures and personnel data applied to activities in science and technology. Expenditures and personnel for each fiscal year to 1999-2000 are actual while the data for 2000-2001 and 2001-2002 are forecasts and estimates respectively.

    Release date: 2002-06-17

  • Articles and reports: 11F0019M2002168
    Geography: Canada
    Description:

    This paper examines the factors contributing to the adoption of advanced technologies in the Canadian food-processing sector. The numbers of technologies used by a plant is found to be highly correlated with expected gains in firm performance. The benefits of enhanced food safety and quality, as well as productivity improvements, are closely associated with technology use. Impediments that negatively affect technology use include software costs, problems with external financing, lack of cash flow for financing, and internal management problems. Even after accounting for the different benefits and costs associated with technology adoption, the numbers of advanced technologies that are adopted are found to be greater in larger plants, in foreign-controlled plants, in plants that engage in both primary and secondary processing, and in the dairy, fruit and vegetable and "other" food product industries.

    Release date: 2002-05-28

  • Articles and reports: 88F0017M2001012
    Geography: Canada
    Description:

    This report covers the use and planned use of 26 advanced manufacturing technologies (AMTs) at the establishment level. Additional information on skill requirements, technology development and implementation practices, results of technology adoption, barriers to adoption and firms' research and development activities was obtained from the 1998 Survey of Advanced Technologies in Canadian Manufacturing.

    Release date: 2001-11-29

  • Articles and reports: 88-003-X20000035770
    Geography: Canada
    Description:

    Given the high cost of R&D, adopting the correct strategies and mix of products is required for success for Canadian biotechnology firms. A recent survey examined the rapid growth of 30 companies. Fast-growing enterprises adopted a strategy of patenting their products, avoiding major production delays, targeting export markets, accessing venture capital, conducting key alliances, and planning the IPO.

    Release date: 2000-10-06

  • 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: 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: 11F0019M2000118
    Geography: Canada
    Description:

    This study uses data to study differences in labour productivity gains across domestic and foreign-controlled establishments in the manufacturing sector for the period 1973 to 1993. In doing so, it also examines the extent to which labour productivity differences exist between small and large establishments and across industry sectors and how they have been changing over time.

    The analysis consists of three parts. In the first section, the connection between labour usage and output is examined. This analysis investigates differences in marginal labour propensities for the different subgroups in the short and long-run. Here volatility is seen to be lower for foreign-controlled establishments. The second section examines the difference between the growth in average labour productivity for the same groups. Here foreign-controlled establishments are seen to have the highest growth rates. The third section investigates whether any trend can be found in the rates of growth for large and small, domestic and foreign establishments and finds that these differences have been increasing over time.

    Release date: 2000-03-01

  • Articles and reports: 56-203-X19970004928
    Description:

    Foreign ownership in the Canadian telecommunications industry has always been an important policy issue, and recent events have further emphasized the significance of this topic.

    Release date: 2000-02-29

  • Articles and reports: 11F0019M1999105
    Geography: Canada
    Description:

    This paper outlines the growth in advanced technology use that has taken place over the last decade in Canadian manufacturing establishments. It presents the percentage of plants that use any one of the advanced technologies studied and how this has changed between 1989 and 1998. It also investigates how growth rates in the 1990s have varied across different technologies in specific functional areas, such as design and engineering, fabrication, communications, and integration and control. In an attempt to discover how changes in technology use are related to certain plant characteristics, the paper then investigates whether the growth in technology use varies across plants that differ by size, nationality and industry. Multivariate analysis is used to investigate the joint effects of plant size, foreign ownership and industry on the incidence of technology adoption and how these effects have changed over the last decade.

    Release date: 1999-12-14

  • Articles and reports: 11F0019M1999101
    Geography: Canada
    Description:

    This paper examines the factors contributing to innovative activity in the Canadian food processing sector. The study first focuses on the importance of research and development activity and advanced business practices used by production and engineering departments. Second, it examines the extent to which larger firm size and less competition serve to stimulate competition-the so-called Schumpeterian hypothesis. Third, the effect of the nationality of a firm on innovation is investigated. Finally, industry effects are examined.

    The paper finds that business practices are significantly related to the probability that a firm is innovative. This is also the case for R&D. Size effects are significant, particularly for process innovations. Elsewhere, their effect is greatly diminished once business practices are included. Foreign ownership is significant only for process innovations and not for product innovations. Competition matters, more so for product than for process innovations. Establishments in the 'other' food products industry tend to lead when it comes to innovation, whereas fish product plants tend to lag.

    Release date: 1999-11-25
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