This paper examines the determinants of innovation and the role of innovation in productivity growth, shifts in market … share and survival in the Canadian manufacturing sector. The paper presents a model that examines the effect of innovation … plant performance both before and after the introduction of an innovation. We find strong evidence that labour productivity …

Does regulation affect the pace and nature of innovation and if so, by how much? We build a tractable and quantifiable … sharp reduction in the firm's innovation response to exogenous demand shocks for firms just below the regulatory threshold …. We then quantitatively fit the parameters of the model to the data, finding that innovation at the macro level is about 5 …

-by-step innovation. Innovations result from costly R&D investments and move technology up one step. Competition is inversely measured by …-and-neck. All these results are consistent with the predictions of step-by-step innovation models …

, probably through its impact on product innovation. The market rewards those businesses that managed to improve their efficiency …