Highlights

1. Percentage of innovative manufacturing plants: Results from the Survey of Innovation 2005 show that two thirds (65.0%) of Canadian manufacturing plants were innovative during the three years, 2002 to 2004; that is, they introduced a new or significantly improved product to the marketplace or implemented a new or significantly improved production process, distribution method, or support activity for their goods or services during this period.
2. Novelty of innovation: Among all innovative manufacturing plants in Canada, one in ten (12.2%) had at least one world-first innovation (product or process) during the three years, 2002 to 2004.
3. Sources of information contributing to innovation: The three internal sources of information for new innovation projects that contributed to the completion of existing innovation projects or provided information for the commercialization of innovation most often identified by innovative manufacturing plants as important sources of information were management staff (96.1%), production staff (93.8%) and sales and marketing staff (89.4%).
4. Clients or customers (91.2%), and suppliers of equipment, materials, components or software (89.7%) were the two external sources of information most often identified as important to innovative manufacturing plants.
5. Activities linked to innovation: Internal research and development linked to new or significantly improved products and acquisition of advanced machinery, equipment, computer hardware or software to produce new or significantly improved products or processes were the innovation activities carried out by the highest percentage of innovative manufacturing plants with four out of five (81.8% and 79.4% respectively) having carried out these activities.
6. Development of innovation: During the three years, 2002 to 2004, most innovations were developed within the plant or the plant’s firm. Three out of four (73.4%) product innovative manufacturing plants and two out of three (64.2%) process innovative manufacturing plants developed innovations within their own plant or firm.
7. Cooperation with innovation partners: During the three years, 2002 to 2004, one in five (21.5%) innovative manufacturing plants co-operated with other plants within their firm, other firms or institutions on innovation activities. A high percentage (84.8%) of plants in co-operative arrangements collaborated with other plants within their firm, other firms or institutions in their own province or territory.
8. Impacts of innovation: Meeting the requirements of existing clients was the market impact of innovation most often identified by innovative manufacturing plants (57.7%) as having high importance during the three years, 2002 to 2004. Increasing the plant’s productivity was indicated by half of innovative manufacturing plants (54.0%) as having high importance.
9. Sources of revenue: In 2004, the most important client or customer (that was not part of the plant’s firm) for innovative manufacturing plants accounted for, on average, 27.5% of their total revenue.
10. Obstacles to innovation: The obstacles most often identified as having high importance for slowing down or causing problems for innovation activities or innovation projects by innovative manufacturing plants during the development of innovation were lack of funds within the plant or firm for innovation (28.7%) and the inability to devote staff to innovation projects on an on-going basis because of production requirements (24.2%).
11. The obstacle to the commercialization of innovation most often identified as having high importance was a market dominated by established firms (16.5%).
12. Use of government programs: Six out of ten (61%) innovative manufacturing plants used at least one government sponsored program during the three years, 2002 to 2004. The program used by the highest percentage of manufacturing innovators was research and development (R&D) tax credits (51.6%).
13. Intellectual property protection: During the three years, 2002 to 2004, 86.0% of innovative manufacturing plants used some method to protect their intellectual property. Confidentiality agreements (54.0%) were the formal method of intellectual property protection used by the greatest percentage of innovative manufacturing plants.
14. Licensing agreements: During the three years, 2002 to 2004, one in six (16.9%) innovative manufacturing plants acquired licenses from other firms or organizations.
15. Suppliers to innovative manufacturing plants: Innovative manufacturing plants were more likely to have suppliers of raw materials and components form the United States (78.5%) than from the rest of Canada (67.2%) in 2004.
16. Among the three out of every four (74.2%) innovative manufacturing plants that purchased new machinery or equipment in 2004, three quarters (74.6%) had suppliers in their own province or territory, one third (36.8%) had suppliers in the rest of Canada and more than half (56.1%) made purchases from the United States.
17. Approximately one in seven (14.9%) innovative manufacturing plants contracted out for R&D services in 2004. Innovative manufacturing plants were no more likely to contract out for R&D services to the rest of Canada (20.1%) than to the United States (19.4%) and were just as likely to contract out for R&D services to European countries (7.2%) as they were to Asia Pacific countries (4.4%) in 2004.