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- 1. Innovation and Training in New Firms ArchivedArticles and reports: 11F0019M2000123Geography: CanadaDescription:
Recent studies have demonstrated the quantitative importance of entry, exit, growth and decline in the industrial population. It is this turnover that rewards innovative activity and contributes to productivity growth.
While the size of the entry population is impressive - especially when cumulated over time - the importance of entry is ultimately due to its impact on innovation in the economy. Experimentation is important in a dynamic, market-based economy. A key part of the experimentation comes from entrants. New entrepreneurs constantly offer consumers new products both in terms of the basic good and the level of service that accompanies it.
This experimentation is associated with significant costs since many entrants fail. Young firms are most at risk of failure; data drawn from a longitudinal file of Canadian entrants in both the goods and service sectors show that over half the new firms that fail do so in the first two years of life. Life is short for the majority of entrants. Only 1 in 5 new firms survive to their tenth birthday.
Since so many entrants fall by the wayside, it is of inherent interest to understand the conditions that are associated with success, the conditions that allow the potential in new entrepreneurs to come to fruition. The success of an entrant is due to its choosing the correct combination of strategies and activities. To understand how these capabilities contribute to growth, it is necessary to study how the performance of entrants relates to differences in strategies and pursued activities.
This paper describes the environment and the characteristics of entrants that manage to survive and grow. In doing so, it focuses on two issues. The first is the innovativeness of entrants and the extent to which their growth depends on their innovativeness. The second is to outline how the stress on worker skills, which is partially related to training, complements innovation and contributes to growth.
Release date: 2000-12-08 - Articles and reports: 88F0017M2000008Geography: CanadaDescription:
This report examines the factors contributing to the rapid growth of a small number of biotechnology firms in Canada.
Release date: 2000-08-28 - Articles and reports: 11F0019M2000151Geography: CanadaDescription:
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 - 4. The working age population, by degrees ArchivedArticles and reports: 88-003-X20000025126Geography: CanadaDescription:
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: 11F0019M2000148Geography: CanadaDescription:
There is a general sense that the 1990s labour market was unique. It has been characterized by notions such as "downsizing", "technological revolution", "the knowledge-based economy", "rising job instability", and so on. This paper provides an extensive overview of the performance of the 1990s labour market, and asks just how different it was from the 1980s. It goes on to ask if the facts are consistent with many common beliefs and explanations. The paper focuses on (a) macro-level labour market outcomes, and (b) distributional outcomes. Macro-level topics include: has the nature of work changed dramatically in the 1990s? has there been a continued ratcheting up of unemployment? have we witnessed rising job instability and increased levels of layoffs? did company downsizing increase in the 1990s? why did per capita income growth stall in the 1990s? for a worker with a given level of human capital, has there been a deterioration in labour market outcomes?
Much of the focus in the labour market over the 1980s and 1990s was on distributional outcomes - who is winning and who is losing. Some of the distributional outcomes of the 1990s labour market addressed in the paper include: outcomes for men and women; changes in the relative wages of the highly educated and earnings inequality; trends in the rate of low-income; the changing outcomes for recent labour market entrants, including young people and immigrants; and the extent to which technological change plays a major role in these outcomes.
The paper concludes with a discussion of the overall performance of the 1990s labour market as compared to the 1980s.
Release date: 2000-05-04 - 6. Innovation in the engineering services industry ArchivedArticles and reports: 63-016-X19990034860Geography: CanadaDescription:
This article presents, for the first time, findings about the engineering services industry. This industry is comprised of firms primarily engaged in providing engineering services. It offers services ranging from feasibility studies to design, project management and commissioning (or the start-up of the operation) of projects.
Release date: 2000-01-18
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- 1. Innovation and Training in New Firms ArchivedArticles and reports: 11F0019M2000123Geography: CanadaDescription:
Recent studies have demonstrated the quantitative importance of entry, exit, growth and decline in the industrial population. It is this turnover that rewards innovative activity and contributes to productivity growth.
While the size of the entry population is impressive - especially when cumulated over time - the importance of entry is ultimately due to its impact on innovation in the economy. Experimentation is important in a dynamic, market-based economy. A key part of the experimentation comes from entrants. New entrepreneurs constantly offer consumers new products both in terms of the basic good and the level of service that accompanies it.
This experimentation is associated with significant costs since many entrants fail. Young firms are most at risk of failure; data drawn from a longitudinal file of Canadian entrants in both the goods and service sectors show that over half the new firms that fail do so in the first two years of life. Life is short for the majority of entrants. Only 1 in 5 new firms survive to their tenth birthday.
Since so many entrants fall by the wayside, it is of inherent interest to understand the conditions that are associated with success, the conditions that allow the potential in new entrepreneurs to come to fruition. The success of an entrant is due to its choosing the correct combination of strategies and activities. To understand how these capabilities contribute to growth, it is necessary to study how the performance of entrants relates to differences in strategies and pursued activities.
This paper describes the environment and the characteristics of entrants that manage to survive and grow. In doing so, it focuses on two issues. The first is the innovativeness of entrants and the extent to which their growth depends on their innovativeness. The second is to outline how the stress on worker skills, which is partially related to training, complements innovation and contributes to growth.
Release date: 2000-12-08 - Articles and reports: 88F0017M2000008Geography: CanadaDescription:
This report examines the factors contributing to the rapid growth of a small number of biotechnology firms in Canada.
Release date: 2000-08-28 - Articles and reports: 11F0019M2000151Geography: CanadaDescription:
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 - 4. The working age population, by degrees ArchivedArticles and reports: 88-003-X20000025126Geography: CanadaDescription:
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: 11F0019M2000148Geography: CanadaDescription:
There is a general sense that the 1990s labour market was unique. It has been characterized by notions such as "downsizing", "technological revolution", "the knowledge-based economy", "rising job instability", and so on. This paper provides an extensive overview of the performance of the 1990s labour market, and asks just how different it was from the 1980s. It goes on to ask if the facts are consistent with many common beliefs and explanations. The paper focuses on (a) macro-level labour market outcomes, and (b) distributional outcomes. Macro-level topics include: has the nature of work changed dramatically in the 1990s? has there been a continued ratcheting up of unemployment? have we witnessed rising job instability and increased levels of layoffs? did company downsizing increase in the 1990s? why did per capita income growth stall in the 1990s? for a worker with a given level of human capital, has there been a deterioration in labour market outcomes?
Much of the focus in the labour market over the 1980s and 1990s was on distributional outcomes - who is winning and who is losing. Some of the distributional outcomes of the 1990s labour market addressed in the paper include: outcomes for men and women; changes in the relative wages of the highly educated and earnings inequality; trends in the rate of low-income; the changing outcomes for recent labour market entrants, including young people and immigrants; and the extent to which technological change plays a major role in these outcomes.
The paper concludes with a discussion of the overall performance of the 1990s labour market as compared to the 1980s.
Release date: 2000-05-04 - 6. Innovation in the engineering services industry ArchivedArticles and reports: 63-016-X19990034860Geography: CanadaDescription:
This article presents, for the first time, findings about the engineering services industry. This industry is comprised of firms primarily engaged in providing engineering services. It offers services ranging from feasibility studies to design, project management and commissioning (or the start-up of the operation) of projects.
Release date: 2000-01-18
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