Using survey data, this paper investigates problems that firms in the Canadian manufacturing sector face in their decision to adopt advanced technology. The data show that while the use of advanced technology is relatively important (users account for over 80% of all shipments), it is not widespread among firms (users represent only about one-third of all establishments). One explanation lies in the fact that while advanced technologies provide a wide range of benefits, firms also face a series of problems that impede them from adopting advanced technology. These impediments fall into five groups: cost-related, institution-related, labour-related, organizationrelated, and information-related. While it might be expected that impediments would be higher for non-users than users of technologies, the opposite occurs. We posit that the reason for this is that innovation involves a learning process. Innovators and technology users face problems that they have to solve and the more innovative firms have greater problems. We test this by examining the factors that are related to whether a firm reports that it faced impediments. Our multivariate analysis reveals that impediments are reported more frequently among technology users than non-users; and more frequently among innovating firms than non-innovating ones. We conclude that the information on impediments in technology and other related surveys (innovation) should not be interpreted as impenetrable barriers that prevent technology adoption. Rather, these surveys indicate areas where successful firms face and solve problems.

In this paper, we explore the linkages between export-market participation and productivity performance in Canadian manufacturing plants. We also examine differences in the relationship between exporting and productivity for foreign-controlled as opposed to domestic-controlled plants, and between younger and older plants. Export participation is associated with improved productivity. The effect is much stronger for domestic-controlled plants than for foreign-controlled plants and for younger businesses than for older businesses. We interpret this as evidence that there is a learning effect associated with export activity but that the potential for improving productivity with entry to export markets differs across firms. JEL Classification: F1, O4Participation au marche´d'exportation et productivite´dans le secteur manufacturier au Canada. Dans ce me´moire, les auteurs explorent les liens entre participation au marched 'exportation et productivite´dans les installations manufacturie`res au Canada. On examine aussi les diffe´rences dans la relation exportation/productivite´entre les installations controˆle´es par des inte´reˆts e´trangers et celles controˆle´es par des inte´reˆts canadiens, et entre les installations plus vieilles et plus re´centes. La participation au marched 'exportation est associe´e a`une plus grande productivite´. L'effet est conside´rablement plus fort (relativement) pour les installations controˆle´es par des inte´reˆts canadiens, et pour les installations les plus re´centes. Les auteurs interpre`tent les re´sultats comme sugge´rant qu'il y a un effet d'apprentissage associe´a`l'activite´d'exportation mais que ce potentiel d'accroissement de productivite´a`cause de l'entre´e dans les marche´s d'exportation varie selon les entreprises.

The Dynamics of Industrial Competition, first published in 1995, describes the internal dynamics of industries using longitudinal data that make it possible to track firms over time. It provides a comprehensive picture of a number of different aspects of firm turnover in North America that arise from the competitive process - the entry and the exit of firms, the growth and decline of incumbent firms, and the merger process. Instantaneous and cumulative measures of market dynamics are provided by examining change in both the short and the long run. Using various measures of firm turnover to proxy the amount of competition, the study examines and contextualizes the relationship between industry performance and the intensity of the competitive process.

for helpful comments. Views expressed in this chapter do not necessarily reflect those of Statistics Canada.

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