--- canonical_url: "https://csls.ca/ipm-archive/ipm-issue-37/rd-and-productivity/" title: "R&D and Productivity" author: name: "CSLS" url: "https://csls.ca/author/cslc/" date_published: "2026-07-13T07:53:08+00:00" date_modified: "2026-07-13T07:53:08+00:00" post_type: "ipm" summary: "" ipm_issue_period: - "Fall 2019" ipm_keyword: - "Canada" - "efficiency" - "firm-level" - "ICT" - "management practices" - "MFP" - "productivity" - "R&D" - "skilled labour" - "stochastic frontier" ipm_research_theme: - "Sectoral and firm-level dynamics" ipm_country_focus: - "Canada" featured_image: "https://csls.ca/wp-content/uploads/2026/06/IPM_50_banner.webp" status: "publish" --- # R&D and Productivity Canonical URL: https://csls.ca/ipm-archive/ipm-issue-37/rd-and-productivity/ # R&D and Productivity [Download full PDF article](https://csls.ca/wp-content/uploads/2026/07/IPM-Issue-37-5-Tang-Wang.pdf) Cite this article × Cite this article as: Tang, Jianmin, and Weimin Wang. 2019. “R&D and Productivity.” International Productivity Monitor, No. 37 (Fall 2019): 120–143. https://www.csls.ca/ipm-archive/ipm-issue-37/rd-and-productivity/ ## Authors: - Jianmin Tang Innovation, Science and Economic Development Canada - Weimin Wang Micro-Economic Policy Analysis Branch, Innovation, Science and Economic Development Canada ## IPM Issue 37 Fall 2019 pp. 120–143 ## 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/) [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/) [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/) [Using Ecosystem Accounting to Integrate the Environment in Measures of Multifactor Productivity Carl Obst Fall 2024 | IPM Issue 47 | pp. 87–108](https://csls.ca/ipm-archive/ipm-issue-47/using-ecosystem-accounting-to-integrate-the-environment-in-measures-of-multifactor-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/) [How Does Industrial Policy Impact Output, Hours and Productivity? The Canadian Experience Tim Sargent Fall 2024 | IPM Issue 47 | pp. 39–53](https://csls.ca/ipm-archive/ipm-issue-47/how-does-industrial-policy-impact-output-hours-and-productivity-the-canadian-experience/) ## Abstract ## Résumé EN FR Copy link Email LinkedIn This article examines the relationship between R&D and MFP at the firm level in Canadian manufacturing using a stochastic frontier model. It finds that R&D does improve MFP, but the actual impact depends on R&D efficiency. R&D efficiency is related to factors internal to the firm including management practices, ICT investment, a skilled workforce, firm size, and market power. These results have implications for R&D policy: simply subsidizing R&D without addressing complementary firm-level factors may have limited productivity impact. Cet article examine la relation entre la R-D et la PMF au niveau des entreprises dans le secteur manufacturier canadien, à l’aide d’un modèle de frontière stochastique. Il constate que la R-D améliore effectivement la PMF, mais que l’impact réel dépend de l’efficience de la R-D. L’efficience de la R-D est liée à des facteurs internes à l’entreprise, notamment les pratiques de gestion, l’investissement en TIC, une main-d’œuvre qualifiée, la taille de l’entreprise et le pouvoir de marché. Ces résultats ont des implications pour la politique en matière de R-D : simplement subventionner la R-D sans s’attaquer aux facteurs complémentaires au niveau des entreprises peut avoir un impact limité sur la productivité. [Download full PDF](https://csls.ca/wp-content/uploads/2026/07/IPM-Issue-37-5-Tang-Wang.pdf)