IDEAS home Printed from https://ideas.repec.org/p/shr/wpaper/07-22.html
   My bibliography  Save this paper

Productivity and innovation: an overview of the issues

Author

Listed:
  • Petr Hanel

    (CIRST, GREDI, Faculte d'administration, Université de Sherbrooke)

Abstract

To introduce the subject, the paper compares the Canadian performance on principal indicators of productivity and innovation with the U.S. and other countries. Follows an overview of principal sources of economic welfare, economic growth and increasing productivity with a special attention given to the relationship between productivity growth and innovation. Before addressing the relationship between innovation and productivity, the paper introduces the concepts and their operational measures or indicators, the sources of innovation and their effects as well as financing and public policies in support of innovation. In the section on the link between innovation and productivity the paper surveys the representative empirical studies of this relationship on industry and enterprise level, including the evidence on private and social returns on investment in R&D and innovation in Canada and abroad. Follows a description of the current econometric modelling of micro-data on innovation and its effect on firm performance. These innovation surveys-based micro econometric studies are inspired by the four-stage CDM model that predicts (1) the probability that a firm innovates, (2) the resources it invests in the activity, (3) the commercial results of innovation and (4) the effect of innovation on firms’ performance indicators such as sales per employee, labour productivity and its growth etc. This model provides the standardized methodology for an ongoing international research project analyzing the data from innovation surveys of majority of OECD countries.

Suggested Citation

  • Petr Hanel, 2007. "Productivity and innovation: an overview of the issues," Cahiers de recherche 07-22, Departement d'économique de l'École de gestion à l'Université de Sherbrooke.
    • Handle: RePEc:shr:wpaper:07-22
    as

    Download full text from publisher

    File URL: http://gredi.recherche.usherbrooke.ca/wpapers/GREDI-0722.pdf
    File Function: First version, 2007
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Surendra Gera & Wulong Gu, 2004. "The Effect of Organizational Innovation and Information and Communications Technology on Firm Performance," International Productivity Monitor, Centre for the Study of Living Standards, vol. 9, pages 37-51, Fall.
    2. Zvi Griliches, 1998. "Productivity, R&D, and the Data Constraint," NBER Chapters, in: R&D and Productivity: The Econometric Evidence, pages 347-374, National Bureau of Economic Research, Inc.
    3. Baldwin, John R. & Hanel, Peter, 2000. "Multinationals and the Canadian Innovation Process," Analytical Studies Branch Research Paper Series 2000151e, Statistics Canada, Analytical Studies Branch.
    4. Andrew Sharpe, 2002. "Raising Canadian Living Standards: A Framework for Analysis," International Productivity Monitor, Centre for the Study of Living Standards, vol. 5, pages 23-40, Fall.
    5. Steven Globerman & John C. Ries & Ilan Vertinsky, 1994. "The Economic Performance of Foreign Affiliates in Canada," Canadian Journal of Economics, Canadian Economics Association, vol. 27(1), pages 143-156, February.
    6. Danny Leung, 2004. "The Effect of Adjustment Costs and Organizational Change on Productivity in Canada: Evidence from Aggregate Data," International Productivity Monitor, Centre for the Study of Living Standards, vol. 9, pages 52-61, Fall.
    7. Gu, Wulong Gera, Surendra, 2004. "The Effect of Organizational Innovation and Information Technology on Firm Performance," The Canadian Economy in Transition 2004007e, Statistics Canada, Economic Analysis Division.
    8. Stiroh, K.J., 2000. "Investment and Productivity Growth - A Survey from the Neoclassical and New Growth Perspectives," Papers 24, Gouvernement du Canada - Industry Canada;Gouvernement du Canada - Industry Canada.
    9. Sabourin, David & Baldwin, John R., 1999. "Technology Adoption: A Comparison Between Canada and the United States," Analytical Studies Branch Research Paper Series 1998119e, Statistics Canada, Analytical Studies Branch.
    10. Gaudreault, Valerie & Gellatly, Guy & Baldwin, John R., 2002. "Financing Innovation in New Small Firms: New Evidence from Canada," Analytical Studies Branch Research Paper Series 2002190e, Statistics Canada, Analytical Studies Branch.
    11. Ken Mayhew & Andy Neely, 2006. "Improving Productivity--Opening the Black Box," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 22(4), pages 445-456, Winter.
    12. Jacques Mairesse & Pierre Mohnen, 1990. "Recherche-Développement et productivité : un survol de la littérature économétrique," Économie et Statistique, Programme National Persée, vol. 237(1), pages 99-108.
    13. Daniel Lind, 2005. "Manufacturing Productivity in Sweden: an International Perspective Since 1960," International Productivity Monitor, Centre for the Study of Living Standards, vol. 11, pages 47-56, Fall.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. 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.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Richard Dion & Robert Fay, 2008. "Understanding Productivity: A Review of Recent Technical Research," Discussion Papers 08-3, Bank of Canada.
    2. Jean-Francois Arsenault & Andrew Sharpe, 2008. "An Analysis of the Causes of Weak Labour Productivity Growth in Canada since 2000," International Productivity Monitor, Centre for the Study of Living Standards, vol. 16, pages 14-39, Spring.
    3. Someshwar Rao & Andrew Sharpe & Jeremy Smith, 2005. "An Analysis of the Labour Productivity Growth Slowdown in Canada since 2000," International Productivity Monitor, Centre for the Study of Living Standards, vol. 10, pages 3-23, Spring.
    4. Orozco, Luis Antonio & Sanabria, John Alirio & Sosa, Juan Camilo & Aristizabal, Jeimy & López, Liliana, 2022. "How do IT investments interact with other resources to improve innovation?," Journal of Business Research, Elsevier, vol. 144(C), pages 358-365.
    5. Centre for the Study of Living Standards, 2012. "The Impact of Information and Communication Technology on the Productivity of the Canadian Transportation System: A Macroeconomic Approach for the Air and Rail Sectors," CSLS Research Reports 2012-07, Centre for the Study of Living Standards.
    6. Rinaldo Evangelista & Maria Savona, 2010. "Innovation and Employment in Services," Chapters, in: Faïz Gallouj & Faridah Djellal (ed.), The Handbook of Innovation and Services, chapter 16, Edward Elgar Publishing.
    7. Evangelista, Rinaldo & Vezzani, Antonio, 2010. "The economic impact of technological and organizational innovations. A firm-level analysis," Research Policy, Elsevier, vol. 39(10), pages 1253-1263, December.
    8. Petr Hanel, 2000. "R&D, Interindustry and International Technology Spillovers and the Total Factor Productivity Growth of Manufacturing Industries in Canada, 1974-1989," Economic Systems Research, Taylor & Francis Journals, vol. 12(3), pages 345-361.
    9. Harabi, Najib, 1994. "Technischer Fortschritt in der Schweiz: Empirische Ergebnisse aus industrieökonomischer Sicht [Technischer Fortschritt in der Schweiz:Empirische Ergebnisse aus industrieökonomischer Sicht]," MPRA Paper 6725, University Library of Munich, Germany.
    10. Hall, Bronwyn H. & Mairesse, Jacques & Mohnen, Pierre, 2010. "Measuring the Returns to R&D," Handbook of the Economics of Innovation, in: Bronwyn H. Hall & Nathan Rosenberg (ed.), Handbook of the Economics of Innovation, edition 1, volume 2, chapter 0, pages 1033-1082, Elsevier.
    11. Maria José Sousa & Miguel González-Loureiro, 2016. "Employee knowledge profiles – a mixed-research methods approach," Information Systems Frontiers, Springer, vol. 18(6), pages 1103-1117, December.
    12. Bernhard Dachs & Martin Hud & Christian Köhler & Bettina Peters, 2016. "Employment Effects of Innovations over the Business Cycle: Firm-Level Evidence from European Countries," DEM Discussion Paper Series 16-20, Department of Economics at the University of Luxembourg.
    13. Meyer, Jenny, 2007. "Older Workers and the Adoption of New Technologies," ZEW Discussion Papers 07-050, ZEW - Leibniz Centre for European Economic Research.
    14. Steiner, Bodo & Ali, Jolene, 2009. "Regional food clusters and government support for clustering: Evidence for a ‘dynamic food innovation cluster’ in Alberta, Canada?," MPRA Paper 26251, University Library of Munich, Germany.
    15. Jasinska-Biliczak Anna & Kowal Jolanta, 2020. "Innovation Capability Development in Regional Entrepreneurship: The Case of Economies in Transition," European Research Studies Journal, European Research Studies Journal, vol. 0(4), pages 6-32.
    16. MOTHE Caroline & NGUYEN Thi Thuc Uyen, 2011. "Do firms rely on sources of information for organizational innovation?," LISER Working Paper Series 2011-39, Luxembourg Institute of Socio-Economic Research (LISER).
    17. Rashid Nikzad, 2023. "Evaluation of Productivity in the Canadian Copyrightbased Industries," Athens Journal of Business & Economics, Athens Institute for Education and Research (ATINER), vol. 9(3), pages 273-284, July.
    18. Danny Leung & Yi Zheng, 2012. "What affects MFP in the long-run? Evidence from Canadian industries," Applied Economics, Taylor & Francis Journals, vol. 44(6), pages 727-738, February.
    19. Samoilenko, Sergey & Osei-Bryson, Kweku-Muata, 2008. "An exploration of the effects of the interaction between ICT and labor force on economic growth in transition economies," International Journal of Production Economics, Elsevier, vol. 115(2), pages 471-481, October.
    20. repec:ehu:cuader:21770 is not listed on IDEAS
    21. Jerzy Rosinski, 2012. "Attitudes of the IT staff against employing organization as a challenge for the development of IT businesses (Postawy pracownikow branzy IT wobec zatrudniajacych organizacji jako wyzwanie dla rozwoju ," Problemy Zarzadzania, University of Warsaw, Faculty of Management, vol. 10(38), pages 229-247.

    More about this item

    Keywords

    Innovation; R&D; productivity; econometric modelling; Canada;
    All these keywords.

    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • L6 - Industrial Organization - - Industry Studies: Manufacturing
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence

    NEP fields

    This paper has been announced in the following NEP Reports:

    Lists

    This item is featured on the following reading lists, Wikipedia, or ReplicationWiki pages:
    1. Socio-Economics of Innovation

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:shr:wpaper:07-22. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Jean-François Rouillard (email available below). General contact details of provider: https://edirc.repec.org/data/deushca.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.