Abstract
This paper assesses the role of inventive and innovational activity in the growth process of Canada, a country which relies overwhelmingly, some 90 per cent, on the importation of technological advances and operational know‐how from abroad. Canada has prospered under this arrangement but at a price. With technology came foreign capital, foreign management and substantial foreign control. To lessen Canada's dependence on foreign know‐how, this country has embarked on an expanded R & D programme. But the pay‐off from these efforts has been less than expected. To throw a light on the subject, the results of two new surveys are presented: one a sample survey of patents granted, the other an interview survey of large corporations. Questions examined include sources of know‐how and technological advances, utilization of inventions and abandonment of innovations, R & D and innovations, domestic and foreign innovations, and the profitability of innovations. Aggregative assessment is supplemented by disaggregative analysis using cross‐section and industry data.
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