Archived — Working Paper Number 33, R&D Propensity and Productivity Performance of Foreign-Controlled Firms in Canada, March 2001
Strategic Policy Sector
Economic Research and Policy Analysis Branch
This paper compares the research and development (R&D) propensity (defined as R&D-to-sales ratio) of foreign-controlled and Canadian-controlled firms in the Canadian manufacturing sector. It assesses if differences in industry composition, export orientation and firm size contribute to R&D performance gaps between the two sets of firms. This analysis focuses on four related issues: identifying key determinants of R&D propensity; and, assessing if the nationality of multinational firm ownership influences R&D spending in Canada, if foreign multinationals in Canada have increased their R&D propensity over time; and, why foreign-controlled firms are more productive than Canadian-controlled ones.
Catalogue number: C21-24/33-2001
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