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Informal Thinkering: How Is It Important?

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  • Pierre J. Tremblay

Abstract

This paper examines innovation processes or technical change-generation processes at the firm level. It emphasizes the notion that the element of technical and technological change that is a determinant of productivity growth is strongly induced by internal factors related to the firm's behavior, via investment in R&D but also, and importantly, on the basis of informal thinkering within plants. This research is unique in that it seeks first, to examine the pattern of technical change and its ensuing productivity growth, and second, to make a comparison between an industrialized and an industrializing country. This comparison is conducted by empirically comparing mills in the pulp and paper manufacturing sector in two countries: Canada and India. The overall analysis is based on direct observations at the mill level, face-to-face interviews and on analysis of mill documentary records. This paper highlights the importance of managing change as a continuous process. The introduction of intermittent, step-jump technical changes contributed little to explain the differences in performance between the mills. Much more important are (i) the continuing sequences of smaller investments in technical change, often linked to the larger step-jumps, and (ii) the existence of steady streams of changes and improvements that are unrecorded as capital expenditure Cet article examine des processus d'innovation ou de génération de changements techniques au niveau de la firme. Il met l'emphase sur le fait que les paramètres clés connexes aux changements techniques et technologiques ayant un impact sur la croissance de productivité sont induits par des facteurs behavioraux internes à la firme. Les changements peuvent être le résultat d'investissement dans la R&D,0501s aussi, et de façon significative, le résultat de processus de conceptions informelles à l'intérieur des firmes. Cette recherche examiner dans un premier temps des processus de changements techniques et la croissance de productivité en résultant. Dans un deuxième temps, elle fait une analyse comparative entre pays industrialisés et s'industrialisant. Cette étude empirique est basée sur des données de première0501n (observations directes, entrevues personnelles, documents internes) collectées dans neuf usines de pâtes et papiers dans deux pays (Canada et Inde). Ce papier met en évidence l'importance de gérer le changement comme un processus continu. L'introduction de changements techniques par sauts intermittents contribue peu à expliquer les différences de croissance de productivité entre les usines. Plus significatives sont (i) les séquences continues de petits investissements (changements techniques), souvent liés aux plus grands changements par sauts, et (ii) l'existence d'un flux continu de changements et d'améliorations qui ne sont pas officiellement enregistrés (aux livres, de façon comptable) comme des investissements en capitaux.

Suggested Citation

  • Pierre J. Tremblay, 1998. "Informal Thinkering: How Is It Important?," CIRANO Working Papers 98s-13, CIRANO.
    • Handle: RePEc:cir:cirwor:98s-13
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    File URL: https://cirano.qc.ca/files/publications/98s-13.pdf
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    References listed on IDEAS

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    1. Pack, Howard, 1988. "Industrialization and trade," Handbook of Development Economics, in: Hollis Chenery & T.N. Srinivasan (ed.), Handbook of Development Economics, edition 1, volume 1, chapter 9, pages 333-380, Elsevier.
    2. Page, John M, Jr, 1980. "Technical Efficiency and Economic Performance: Some Evidence from Ghana," Oxford Economic Papers, Oxford University Press, vol. 32(2), pages 319-339, July.
    3. Pavitt, Keith, 1984. "Sectoral patterns of technical change: Towards a taxonomy and a theory," Research Policy, Elsevier, vol. 13(6), pages 343-373, December.
    4. Samuel Hollander, 1965. "The Sources of Increased Efficiency: A Study of DuPont Rayon Plants," MIT Press Books, The MIT Press, edition 1, volume 1, number 026258235x, April.
    5. Pierre J. Tremblay, 1998. "Organize to Generate Innovation: Tools to Measure Technical Change, Productivity and Change-Generating Efforts," CIRANO Working Papers 98s-12, CIRANO.
    6. Nelson, Richard R, 1981. "Research on Productivity Growth and Productivity Differences: Dead Ends and New Departures," Journal of Economic Literature, American Economic Association, vol. 19(3), pages 1029-1064, September.
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    Cited by:

    1. Pierre J. Tremblay, 1998. "Organize to Generate Innovation: Tools to Measure Technical Change, Productivity and Change-Generating Efforts," CIRANO Working Papers 98s-12, CIRANO.

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