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  • Articles and reports: 11F0019M1999137
    Geography: Canada
    Description:

    This paper describes the evidence that several Statistics Canada studies have developed on the importance of innovation to growth and the need for highly skilled workers in the innovation process. Rather than focusing on broad industry aggregates as is often done, we concentrate our attention on firms and their behaviour. This allows us to investigate the connection between the success of businesses and the strategies that they pursue.

    We find that the more successful firms attribute their success to having developed competencies in a wide range of areas-but that the common factor that most frequently distinguishes faster from slower growing firms is innovation. Innovators in turn place greater emphasis on training and acquiring skilled workers.

    The studies also show that the emphasis on highly skilled workers varies across industries. In goods industries, a training strategy complements an innovation strategy that focuses on R&D, the adoption of new advanced technologies, or the development of new processes. Small firms that are innovative train their workers when they introduce new machinery and equipment. In the service sector, the innovation strategy relies less on new capital and more on new skills embodied in the workforce. Here there is evidence that a training strategy, by itself, has more impact on the success of a firm-probably because it is more likely to be the innovation strategy of the firm.

    Release date: 1999-11-30

  • Articles and reports: 11F0019M1999121
    Geography: Canada
    Description:

    Entry and exit are important phenomena. This paper reviews the evidence on the size of this process and its contribution to productivity and innovation. It then develops a detailed portrait of the characteristics of new firms that survive and those that fail. In doing so, it examines the type of competencies that are developed in both groups of firms. It asks which competencies are developed by new firms. In particular, it focuses on the innovative capabilities of new firms. It shows that small firms in general and entrants in particular are heterogeneous when it comes to their innovative activity. The types of innovative activity in which they are engaged vary widely. Some focus on research and development (R&D) and new products. Others focus on new technologies. Still others stress the development of human capital. In addition, this paper examines the competitive environment that new firms face and the connection between growth and innovation. It also examines the complementary skills that are employed by innovators. Finally, the paper focuses on the causes of failure in the firm population. It extends earlier work that finds that failing firms differ from surviving firms in terms of basic competencies-management, financial management and marketing capabilities.

    Release date: 1999-02-25
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  • Articles and reports: 11F0019M1999137
    Geography: Canada
    Description:

    This paper describes the evidence that several Statistics Canada studies have developed on the importance of innovation to growth and the need for highly skilled workers in the innovation process. Rather than focusing on broad industry aggregates as is often done, we concentrate our attention on firms and their behaviour. This allows us to investigate the connection between the success of businesses and the strategies that they pursue.

    We find that the more successful firms attribute their success to having developed competencies in a wide range of areas-but that the common factor that most frequently distinguishes faster from slower growing firms is innovation. Innovators in turn place greater emphasis on training and acquiring skilled workers.

    The studies also show that the emphasis on highly skilled workers varies across industries. In goods industries, a training strategy complements an innovation strategy that focuses on R&D, the adoption of new advanced technologies, or the development of new processes. Small firms that are innovative train their workers when they introduce new machinery and equipment. In the service sector, the innovation strategy relies less on new capital and more on new skills embodied in the workforce. Here there is evidence that a training strategy, by itself, has more impact on the success of a firm-probably because it is more likely to be the innovation strategy of the firm.

    Release date: 1999-11-30

  • Articles and reports: 11F0019M1999121
    Geography: Canada
    Description:

    Entry and exit are important phenomena. This paper reviews the evidence on the size of this process and its contribution to productivity and innovation. It then develops a detailed portrait of the characteristics of new firms that survive and those that fail. In doing so, it examines the type of competencies that are developed in both groups of firms. It asks which competencies are developed by new firms. In particular, it focuses on the innovative capabilities of new firms. It shows that small firms in general and entrants in particular are heterogeneous when it comes to their innovative activity. The types of innovative activity in which they are engaged vary widely. Some focus on research and development (R&D) and new products. Others focus on new technologies. Still others stress the development of human capital. In addition, this paper examines the competitive environment that new firms face and the connection between growth and innovation. It also examines the complementary skills that are employed by innovators. Finally, the paper focuses on the causes of failure in the firm population. It extends earlier work that finds that failing firms differ from surviving firms in terms of basic competencies-management, financial management and marketing capabilities.

    Release date: 1999-02-25
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