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Advanced technology, innovation, wages and productivity in the Canadian manufacturing sector

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  • Brian P. Cozzarin

Abstract

In this article, we used a two-step estimation procedure, where in the first stage, the number of advanced manufacturing technologies used in the firm was estimated using a negative binomial regression, and the expenditure on process and product innovation was estimated using a type II Tobit procedure. In the second stage, we used the predicted values from the first stage in wage and labour productivity equations. The data were from the 2009 Survey of Innovation and Business Strategy which was linked to the General Index of Financial Information (2004-2009) and the Longitudinal Employment Analysis Program (2004-2009). The implications for policy are that we should not expect large aggregate effects of innovation on productivity and employment. We should expect wage increases and productivity increases, with process innovation. We should also expect moderate wage increases with product innovation, and contrary to process innovation, the effect on productivity of product innovation was negative.

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  • Brian P. Cozzarin, 2016. "Advanced technology, innovation, wages and productivity in the Canadian manufacturing sector," Applied Economics Letters, Taylor & Francis Journals, vol. 23(4), pages 243-249, March.
    • Handle: RePEc:taf:apeclt:v:23:y:2016:i:4:p:243-249
    DOI: 10.1080/13504851.2015.1068913
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    Cited by:

    1. Neda Trifkovic, 2016. "Private standards and labour productivity in the food sector in Vietnam," WIDER Working Paper Series 163, World Institute for Development Economic Research (UNU-WIDER).
    2. Shi‐Xiao Wang & Wen‐Min Lu & Shiu‐Wan Hung, 2020. "Improving innovation efficiency of emerging economies: The role of manufacturing," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 41(4), pages 503-519, June.
    3. Ayinde, Taofeek O. & Olaniran, Abeeb O. & Abolade, Onomeabure C. & Ogbonna, Ahamuefula Ephraim, 2023. "Technology shocks - Gold market connection: Is the effect episodic to business cycle behaviour?," Resources Policy, Elsevier, vol. 84(C).
    4. MahdaviMazdeh, Hossein & Saunders, Chad & Hawkins, Richard William & Dewald, Jim, 2021. "Reconsidering the dynamics of innovation in the natural resource industries," Resources Policy, Elsevier, vol. 72(C).
    5. Neda Trifković, 2016. "Private standards and labour productivity in the food sector in Vietnam," WIDER Working Paper Series wp-2016-163, World Institute for Development Economic Research (UNU-WIDER).
    6. Kerstin Hotte & Melline Somers & Angelos Theodorakopoulos, 2022. "Technology and jobs: A systematic literature review," Papers 2204.01296, arXiv.org.

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