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National Innovation, Indicators and Policy

Edited by Louise Earl and Fred Gault

This book takes stock of what is known about the process of innovation and its effects, and the policy interventions that influence both. It provides insights into future research required to support evidence-based policy-making and makes clear the need to take a systems approach to the analysis of innovation, its outcomes and its impacts.
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Chapter 5: Innovation and Other Components of Growth in Canadian Technology Firms

Michael Bordt, Frances Anderson, Louise Earl and Tomás Gabriel Bas


5. Innovation and other components of growth in Canadian technology firms Michael Bordt, Frances Anderson, Louise Earl, Charlene Lonmo and Tomás Gabriel Bas INTRODUCTION This chapter is derived from a series of working papers on ‘Characteristics of Firms that Grow from Small to Medium Size,’ a joint project of Statistics Canada and the National Research Council’s Industrial Research Assistance Program (NRC-IRAP). The project developed out of a need for a better understanding of how and why Canadian technology-based businesses grow. Existing studies on business growth (summarized in Bas 2003) have largely involved specific industries or have been done with a limited set of factors. While building on these, the current project takes advantage of the specific data strengths of Statistics Canada’s Science, Innovation and Electronic Information Division to provide a unique assessment of a broad range of growth factors as they relate to Canadian firms. There have been numerous approaches to the study of the factors contributing to the growth of firms. The theoretical models (for example, Penrose 1959; Moreno and Casillas 2002), as well as empirical research (Niosi 2000; Baldwin 2004), highlight many of the same important factors: conducting research and development (R&D); engaging in business alliances; being competent in obtaining funding; protecting intellectual property (IP); and finding a market niche. None of the preceding work considered exactly the same topic as the one addressed here – that is, the characteristics of Canadian technology-based firms that have made the transition from small to medium size....

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