Research and Development in the Canadian Forest Product Sector ‐ Another Weak Link?

Abstract

For over a decade the Science Council of Canada has argued with increasing conviction that Canada's industrial dilemmas stem from technological weaknesses that result primarily from high levels of foreign ownership (e.g. Cordell, 1971; Bourgault, 1972; Britton and Gilmour, 1978; Shepherd, 1980). Indeed, the council urges that only by adopting an industrial strategy explicitly based on the concept of technological sovereignty can Canada hope to ensure the international competitiveness of its economy and offer the employment opportunities appropriate to its stage of development. If such pleas are to be translated into comprehensive and coherent action, however, there is an admitted need for more sectoral studies to detail the effects of foreign ownership and provide an evaluation of existing capacilities necessary to the formulation of effective policies. In this paper, therefore, I will briefly compare research and development (r & d) in the forest product sectors of Canada and the United States. Since Canada's forest industries have long attracted foreign, and especially American, direct investments, such a comparison is considered to be particularly appropriate (Marshall et al., 1936: 35–55; Hayter, 1981a).