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Below are links and discussion related to the values of freedom, hope, trust, privacy, responsibility, safety, and well-being, within business and government situations arising in the areas of security, privacy, technology, corporate governance, sustainability, and CSR.

Study: Effect of changing technology use on plant performance in the manufacturing sector , 27.7.04

The Daily, Statistics Canada

According to a new study, manufacturing companies that increase their use of advanced technology during the mid-1990s also experienced greater growth in labour productivity during the same period.

The study also found a significant link between productivity growth and growth in market share. In other words, advanced technology use led to growth in labour productivity, which in turn led to growth in market share.


  • Investment in advanced technology key for productivity growth: Adoption of advanced technology can result in gains in labour productivity for a number of reasons. Use of these technologies can result in improvements in production efficiencies, as firms are able to produce more with less. Or they may allow firms to produce higher quality products. Furthermore, they may even result in an increase in the capital intensity of the firm.[...]


  • Use of ICTs during production ordering process leads to productivity gains: This study also sheds light on how ICTs contribute to success. The study found that the highest growth was in the adoption of network communications technologies (local area networks, company-wide networks and inter-company networks).[...]

  • Growth in labour productivity key factor behind market-share growth
    Over the period studied, plants exchanged substantial amounts of market share as some plants grew and others declined. About 15% of market share in an average four-digit industry was transferred from continuing plants that lost market share to plants that gained market share. At the beginning of the period, plants that subsequently increased their market share were 16% less productive than those about to lose market share; by the end of the period, they had become 17% more productive.[...]

  • Research and development important for market-share growth
    Complementary investments in firm competencies were also shown to be important. Firms did particularly well if they stressed a strategy that focussed on the use of advanced technologies.[...]

    The economic analysis study The Effect of Changing Technology Use on Plant Performance in the Canadian Manufacturing Sector (11F0027MIE2004020, free) is now available online. From the Our Products and Services page, under Browse our Internet publications, choose Free, then National Accounts.

    More studies on technology and innovation can be found on the Update on Economic Analysis page (11-623-XIE, free) of our website.

  • Comments

      It would be interesting to know if the same relationship exists in service companies.

    Post a Comment



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    "We shall need compromises in the days ahead, to be sure. But these will be, or should be, compromises of issues, not principles. We can compromise our political positions, but not ourselves. We can resolve the clash of interests without conceding our ideals. And even the necessity for the right kind of compromise does not eliminate the need for those idealists and reformers who keep our compromises moving ahead, who prevent all political situations from meeting the description supplied by Shaw: "smirched with compromise, rotted with opportunism, mildewed by expedience, stretched out of shape with wirepulling and putrefied with permeation.
    Compromise need not mean cowardice. .."

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