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Innovation and Productivity: Summary Results for Canadian Manufacturing Establishments

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  • Pierre Therrien
  • Petr Hanel

Abstract

Lagging innovation performance is seen as a key factor explaining weak productivity growth in Canada. This article uses data from the Canadian Survey of Innovation 2005 and the Annual Survey of Manufactures and Logging (ASML) to estimate an econometric model linking innovation and productivity in manufacturing firms. Our main findings are that firms with higher innovation output (measured by innovation sales per employee, i.e. sales of new and improved products per employee) achieve higher labour productivity, even when size of firm, intensity of human and physical capital, and labour productivity at the beginning of the period are taken into account.

Suggested Citation

  • Pierre Therrien & Petr Hanel, 2011. "Innovation and Productivity: Summary Results for Canadian Manufacturing Establishments," International Productivity Monitor, Centre for the Study of Living Standards, vol. 22, pages 11-28, Fall.
    • Handle: RePEc:sls:ipmsls:v:22:y:2011:2
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    File URL: http://www.csls.ca/ipm/22/IPM-22-Therrien-Hanel.pdf
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    References listed on IDEAS

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    Cited by:

    1. Don Drummond & Annette Ryan & Michael R. Veall, 2013. "Improving Canada's Productivity Performance: The Potential Contribution of Firm-level Productivity Research," International Productivity Monitor, Centre for the Study of Living Standards, vol. 26, pages 86-93, Fall.
    2. Andrew Sharpe & Ricardo de Avillez, 2012. "A Detailed Analysis of Nova Soctia;s Productivty Performance, 1997-2010," CSLS Research Reports 2012-05, Centre for the Study of Living Standards.
    3. Jiří Mihola & Petr Wawrosz & Jana Kotěšovcová, 2015. "Is the most innovative firm in the world really innovative?," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 21(1), pages 41-54, March.

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