Technology Use and Industrial Transformation: Empirical Perspectives

Abstract

This study examines technology use in Canada's manufacturing sector and how a set of technology-using manufacturing establishments performed relative to non-users. Data originates from a recent Statistics Canada survey, asking manufacturing firms about their use of 22 advanced manufacturing technologies, and panel data taken from the Census of Manufacturers.

Results show that the use of advanced manufacturing technology is widespread, especially in large firms, that multiple-technology use is the norm, and that technologies are generally combined within, as opposed to across, production stages. The technology revolution has been felt more in the area of inspection and communications and less in fabrication and assembly. In terms of performance, technology-using establishments pay higher wages, enjoy higher labor productivity and are gaining market share at the expense of non-users.

JEL Classification: L6, O3