--- canonical_url: "https://csls.ca/ipm-archive/ipm-issue-22/innovation-and-productivity-summary-results-for-canadian-manufacturing-establishments/" title: "Innovation and Productivity: Summary Results for Canadian Manufacturing Establishments" author: name: "CSLS" url: "https://csls.ca/author/cslc/" date_published: "2026-07-13T07:33:43+00:00" date_modified: "2026-07-13T07:33:43+00:00" post_type: "ipm" summary: "" ipm_issue_period: - "Fall 2011" ipm_keyword: - "Canada" - "CDM model" - "firm-level" - "innovation" - "labour productivity" - "manufacturing" - "productivity" - "R&D" - "Survey of Innovation" ipm_research_theme: - "Technology and innovation" ipm_country_focus: - "Canada" - "OECD" featured_image: "https://csls.ca/wp-content/uploads/2026/06/IPM_50_banner.webp" status: "publish" --- # Innovation and Productivity: Summary Results for Canadian Manufacturing Establishments Canonical URL: https://csls.ca/ipm-archive/ipm-issue-22/innovation-and-productivity-summary-results-for-canadian-manufacturing-establishments/ # Innovation and Productivity: Summary Results for Canadian Manufacturing Establishments [Download full PDF article](https://csls.ca/wp-content/uploads/2026/07/IPM-Issue-22-2-Therrien-Hanel.pdf) Cite this article × Cite this article as: Therrien, Pierre, and Petr Hanel. 2011. “Innovation and Productivity: Summary Results for Canadian Manufacturing Establishments.” International Productivity Monitor, No. 22 (Fall 2011): 11–28. https://www.csls.ca/ipm-archive/ipm-issue-22/innovation-and-productivity-summary-results-for-canadian-manufacturing-establishments/ ## Authors: - Pierre Therrien Innovation, Science and Economic Development Canada - Petr Hanel Université de Sherbrooke / CIRST ## IPM Issue 22 Fall 2011 pp. 11–28 ## Related IPM articles [The Relationship between Efficiencies Defenses for Mergers and TFP Growth Robin Shaban Fall 2025 | IPM Issue 49 | pp. 82–102](https://csls.ca/ipm-archive/ipm-issue-49/the-relationship-between-efficiencies-defenses-for-mergers-and-tfp-growth/) [Labour Productivity as a Measure of Technological Change Ulrich Kohli Fall 2025 | IPM Issue 49 | pp. 64–81](https://csls.ca/ipm-archive/ipm-issue-49/labour-productivity-as-a-measure-of-technological-change/) [Adult Skills and Productivity: New Evidence from PIAAC 2023 Dan Andrews, Balázs Égert, Christine de La Maisonneuve Fall 2025 | IPM Issue 49 | pp. 41–63](https://csls.ca/ipm-archive/ipm-issue-49/adult-skills-and-productivity-new-evidence-from-piaac-2023/) [Appendix: Variable Definitions and Country/Sector Coverage for Regulatory Reform Analysis Gilbert Cette, Jimmy Lopez, Giuseppe Nicoletti, Océane Vernerey Fall 2025 | IPM Issue 49 | pp. 1–18](https://csls.ca/ipm-archive/ipm-issue-49/appendix-variable-definitions-and-country-sector-coverage-for-regulatory-reform-analysis/) [The Potential Impact of Pro-competitive Regulatory Reforms on Productivity and Growth in Canada Gilbert Cette, Jimmy Lopez, Giuseppe Nicoletti, Océane Vernerey Fall 2025 | IPM Issue 49 | pp. 3–40](https://csls.ca/ipm-archive/ipm-issue-49/the-potential-impact-of-pro-competitive-regulatory-reforms-on-productivity-and-growth-in-canada/) [IPM Issue 49 Editors’ Overview Andrew Sharpe, Bart van Ark, Paul Schreyer Fall 2025 | IPM Issue 49 | pp. 1–2](https://csls.ca/ipm-archive/ipm-issue-49/) [De-industrialization and the Great Productivity Slowdown: What Comes Next? Paul Fisher Spring 2025 | IPM Issue 48 | pp. 115–138](https://csls.ca/ipm-archive/ipm-issue-48/de-industrialization-and-the-great-productivity-slowdown-what-comes-next/) [Appendix: UK Productivity Growth Rates Across Data Vintages and Studies Josh Martin Spring 2025 | IPM Issue 48 | pp. 65–73](https://csls.ca/ipm-archive/ipm-issue-48/appendix-uk-productivity-growth-rates-across-data-vintages-and-studies/) [Opportunities and Risks of Artificial Intelligence for Productivity Francesco Filippucci, Peter Gal, Katharina Laengle, Matthias Schief, Filiz Unsal Spring 2025 | IPM Issue 48 | pp. 1–26](https://csls.ca/ipm-archive/ipm-issue-48/opportunities-and-risks-of-artificial-intelligence-for-productivity/) [Eroding Natural Capital: An Alternative Explanation for the Secular Decline in Productivity Growth Christina Caron Fall 2024 | IPM Issue 47 | pp. 109–147](https://csls.ca/ipm-archive/ipm-issue-47/eroding-natural-capital-an-alternative-explanation-for-the-secular-decline-in-productivity-growth/) ## Abstract ## Résumé EN FR Copy link Email LinkedIn Lagging innovation performance is seen as a key factor explaining weak productivity growth in Canada. This article uses data from the Canadian Survey of Innovation 2005 and the Annual Survey of Manufactures and Logging (ASML) to estimate an econometric model linking innovation and productivity in manufacturing firms. Our main findings are that firms with higher innovation output (measured by innovation sales per employee, i.e. sales of new and improved products per employee) achieve higher labour productivity, even when size of firm, intensity of human and physical capital, and labour productivity at the beginning of the period are taken into account. RÉSUMÉ Le piètre rendement en matière d’innovation semble être un facteur essentiel pour expliquer la faible croissance de la productivité au Canada. Cet article montre comment les données de l’Enquête canadienne sur l’innovation de 2005 et de l’Enquête annuelle sur les manufactures et l’exploitation forestière (EAMEF) ont servi à l’élaboration d’un modèle économétrique établissant le lien entre l’innovation et la productivité dans les entreprises de fabrication. Nos principaux résultats indiquent que les entreprises dont le produit en innovation est plus élevé (selon la mesure des ventes en innovation par employé, c. à d. les ventes de produits nouveaux et améliorés par employé) atteignent une productivité du travail plus élevée, même en tenant compte de la taille de l’entreprise, de l’intensité du capital humain et physique et de la productivité du travail au début de cette période. THE STANDARD OF LIVING AND THE QUALITY Le retard des performances d’innovation est considéré comme un facteur clé pour expliquer la faible croissance de la productivité au Canada. Cet article utilise les données de l’Enquête canadienne sur l’innovation 2005 et de l’Enquête annuelle des manufactures et de l’exploitation forestière pour estimer un modèle économétrique reliant l’innovation et la productivité dans les entreprises manufacturières. Nos principaux constats sont que les entreprises affichant une production d’innovation plus élevée (mesurée par les ventes d’innovation par employé, c.-à-d. les ventes de produits nouveaux et améliorés par employé) atteignent une productivité du travail plus élevée, même en tenant compte de la taille de l’entreprise, de l’intensité du capital humain et physique et de la productivité du travail en début de période. [Download full PDF](https://csls.ca/wp-content/uploads/2026/07/IPM-Issue-22-2-Therrien-Hanel.pdf)