Innovation, Strategy and Canada's Forest Products Industry

Steven Globerman (), Masao Nakamura, Karen Ruckman and Ilan Vertinsky

Canadian Public Policy, 1998, vol. 24, issue s2, 27-40

Abstract: This study identifies the changes affecting the Canadian forest products industry and relates those changes to imperatives facing Canadian firms to modify their corporate and business-level strategies. The paper investigates the role of innovation strategies and suggests changes to institutional arrangements that indirectly or directly accommodate them. More secure forestry tenure arrangements and a change in policies toward industry concentration are indirect ways of inducing innovation. The government's position in an effective innovation strategy involves research focusing on forest environment while the emphasis of cooperative labs would be on basic or precompetitive research in wood products. All the recommendations act to increase the incentives of private investors to innovate by capturing a greater share of the returns of their own innovations.

Date: 1998
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