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Innovation quality and manufacturing firms' performance in Canada

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  • Brian Cozzarin

Abstract

The overall objective of this paper was to determine the impact of producing a world-first innovation, a Canada-first innovation and a first-to-the firm innovation on firms' economic performance (employment, labour productivity, market share and total value added). The study used unique data from Statistics Canada's 1999 Survey of Innovation that was linked to the 1997 Annual Survey of Manufactures. Three hypotheses were tested: that innovative firms (firm-first, Canada-first, world-first) should have higher performance (in terms of the performance measures that are defined in the next section) than non-innovative firms; that the dichotomous innovation variables should be statistically different from zero in the multivariate analysis; that the estimated coefficients in the performance regressions should be greater for world-first innovations compared to firm-first innovations. In the regressions world-first innovators had higher employment and market share offering support for the first hypothesis, while the results for labour productivity and total value added were not statistically significant. With regard to hypothesis two, the multivariate results were somewhat mixed since the world-first innovator was significant in two performance equations. Hypothesis three was confirmed since in all cases the ordering on coefficient size for the performance variables was world, Canada, and firm (with world being the largest and firm being the smallest).

Suggested Citation

  • Brian Cozzarin, 2004. "Innovation quality and manufacturing firms' performance in Canada," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 13(3), pages 199-216.
    • Handle: RePEc:taf:ecinnt:v:13:y:2004:i:3:p:199-216
    DOI: 10.1080/10438590410001628378
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    References listed on IDEAS

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    1. Pierre Mohnen & Pierre Therrien, 2002. "Comparing the Innovation Performance of Canadian Firms and those of Selected European Countries: An Econometric Analysis," CIRANO Working Papers 2002s-80, CIRANO.
    2. Thomas Hatzichronoglou, 1997. "Revision of the High-Technology Sector and Product Classification," OECD Science, Technology and Industry Working Papers 1997/2, OECD Publishing.
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    Cited by:

    1. Brian Cozzarin & Jennifer Percival, 2006. "Complementarities between organisational strategies and innovation," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 15(3), pages 195-217.
    2. Ernst, Daniel & Stoetzer, Matthias-Wolfgang, 2012. "Beschäftigungseffekte von Innovationen auf Unternehmensebene: Ein Überblick theoretischer und empirischer Befunde," Wirtschaftswissenschaftliche Schriften 03/2012, Ernst-Abbe-Hochschule Jena – University of Applied Sciences, Department of Business Administration.
    3. Czarnitzki, Dirk & Hanel, Petr & Rosa, Julio Miguel, 2011. "Evaluating the impact of R&D tax credits on innovation: A microeconometric study on Canadian firms," Research Policy, Elsevier, vol. 40(2), pages 217-229, March.
    4. Franziska Handrich & Sven Heidenreich & Tobias Kraemer, 2022. "Innovate or game over? Examining effects of product innovativeness on video game success," Electronic Markets, Springer;IIM University of St. Gallen, vol. 32(2), pages 987-1002, June.
    5. Zdenka Dudic & Branislav Dudic & Michal Gregus & Daniela Novackova & Ivana Djakovic, 2020. "The Innovativeness and Usage of the Balanced Scorecard Model in SMEs," Sustainability, MDPI, vol. 12(8), pages 1-22, April.
    6. Cahill, Sean & Rich, Tabitha & Cozzarin, Brian, 2015. "Innovation in the Canadian Food Processing Industry: Evidence from the Workplace and Employee Survey," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 18(2), pages 1-22, May.
    7. Mehmet Ugur & Sefa Awaworyi Churchill & Edna Solomon, 2018. "Technological Innovation And Employment In Derived Labour Demand Models: A Hierarchical Meta†Regression Analysis," Journal of Economic Surveys, Wiley Blackwell, vol. 32(1), pages 50-82, February.
    8. Ugur, Mehmet & Awaworyi, Sefa & Solomon, Edna, 2016. "Technological innovation and employment in derived labour demand models: A hierarchical meta-regression analysis," MPRA Paper 73557, University Library of Munich, Germany.
    9. Santos, David Ferreira Lopes & Basso, Leonardo Fernando Cruz & Kimura, Herbert, 2018. "The trajectory of the ability to innovate and the financial performance of the Brazilian industry," Technological Forecasting and Social Change, Elsevier, vol. 127(C), pages 258-270.
    10. Santos, David Ferreira Lopes & Basso, Leonardo Fernando Cruz & Kimura, Herbert & Kayo, Eduardo Kazuo, 2014. "Innovation efforts and performances of Brazilian firms," Journal of Business Research, Elsevier, vol. 67(4), pages 527-535.

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