The Role of Innovation in the Forest Products Industry

Abstract

Abstract The US forest products industry has lost several hundred thousand jobs over recent years. It is argued that low-cost, foreign competition is largely responsible for this loss. Given this situation, enhancing innovation is increasingly seen as a path to competitive advantage and improved financial performance. Strategies have been and are being developed at the state and national level in the United States as well as the national level in many other countries. Although there is general recognition that innovation can positively impact competitiveness in the industry, there is little research verifying this relationship. This article discusses current innovation research focusing on the forest products industry. It also provides a brief example of a competitor nation's (Finland) efforts to enhance innovation in its forest products industry. With this background, the potential roles in enhancing innovation in the US forest products industry of company executives, policymakers, and researchers/educators are outlined. For example, it is recommended that companies concentrate on creating more innovation-centric cultures and policymakers are encouraged to support the future forest products industry workforce. Finally, it is suggested that the research and education community can be more effective in supporting industry through industry-focused research and developing skills of current and future employees.