Business Strategies in Innovative and Non-Innovative Firms in Canada

Abstract

This study investigates differences in the policies being pursued by innovative and non-innovative firms. It focuses on a broad group of strategies in marketing, finance, production, management and human resources and asks whether there are key areas in which the strategies being followed by innovative and non-innovative firms differ. It also asks how the activities of firms in each of these areas differs. Finally, it compares the performance of innovative and non-innovative firms. The study finds that innovative firms place a greater emphasis on management, human resources, marketing, financing, government programs and services, and production efficiencies. In most of these areas, innovative firms pursue activities more intensively. Finally, innovative firms are more successful than non-innovative firms.

JEL Classification: M0, M1, L10, L21