Sourcing Knowledge and Innovation in a Low-Technology Industry

This paper investigates the relationship between knowledge sourcing and innovation in a select low- to medium-technology industry, the forest sector. It is based on data from the Statistics Canada Survey of Innovation 2005. Econometric models are developed and tested, specifically logistic regression analyses, in order to probe the relationship between select forms of embodied and disembodied knowledge and levels of innovation intensity. Differences between single establishment Canadian firms, multi-establishment Canadian firms, Canada-USA multi-establishment firms and establishments belonging to multinational firms are studied in terms of the relationship between innovation and sources of knowledge. Findings indicate that establishment innovative performance is related to knowledge sourcing strategies and furthermore that organization ownership/structure impacts significantly upon this relationship.