Labor productivity growth in the Canadian electronic and electrical product manufacturing industry declined, from 21% per year in the period 1997-2000, to negative 4% per year in the period 2000-2006. This paper investigates if the restructuring and the reallocation of market share and resource...

Empirical studies commonly use research and development (R&D) to measure innovation and often find, especially in Canada, no strong link between productivity and innovation. In this article, we model innovation as an unobservable latent variable that underlies four indicators: R&D, patents,...