Effect of policy incentives and the geography of exports to foster innovation in Canadian firms

Claudia de Fuentes
Saint Mary's University
Tuesday, 20 February 2018 - 12:00

Innovation Surveys have been the key source of information for studying innovation in a fairly systematic and comparative way; several studies have used these surveys to contribute to the literature on innovation studies. This paper seeks to contribute to the literature by analyzing the impact of public policy initiatives on innovation by firms, and the interplay with the geography of exports, differentiating their effects for manufacturing and service sectors in Canadian firms for the years 2009 and 2012. Our results suggest that public policy initiatives are playing an important role in fostering innovation in Canadian firms, and that these initiatives are starting to play a key role in the service sector, as our results show that, in 2012, tax credits played an even more important role in the service sector than in manufacturing. In addition, our results suggest that the search for foreign markets is also important for innovation, but there appears to be a selection effect, as engaging in European and Asian markets is positive and significant for innovation. Our results have important policy implications in terms of the interplay of public policy incentives, the geography of exports, and innovation differentiating by services and manufacturing.


Ciudad Politécnica de la Innovación
Edificio 8E, Acceso J, Planta 4ª (Sala Descubre. Cubo Rojo)
Universitat Politècnica de València | Camino de Vera s/n

Short CV: 

Systems of Innovation University-Industry collaboration Global innovation networks Social Innovation Determinants of innovation

Ph.D., Social Sciences with speciality in Innovation and Technology Development, Universidad Autónoma Metropolitana-Xochimilco, 2007 Masters, Masters in Economics and Management of Technical Change, Universidad Autónoma Metropolitana-Xochimilco, 2000 Bachelors, Chemical Engineering, Universidad Autónoma Metropolitana-Azcapotzalco, 1997