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does not appear to automatically create a demand for further training. These findings are a strong
argument for additional public-sector investment in post-secondary education programs, and in
enhancing access to these programs.
By size of firm:
Table 7: Employees with Post -secondary Education by Firm Size
Employees with Post-secondary Education
% of respondents by category
< 40% > 40% sig of c2
Small (less than 20 employees) 45% 55%
Medium (less than 100 employees) 61% 39%
Large (more than 100 employees) 80% 20%
0.037
Innovation and the Management of Human Resources
CPROST Report #00-03 8
Other Results
Statistics Canada has recently carried out a major survey of innovation in the manufacturing and natural
resources sector2. As part of this survey it asked questions concerning training and hiring practices in
Canadian industry. This survey used the Oslo manual definition of innovation – “new to the firm”. They
found the following;
Obstacles to innovation:
· 62% found it difficult to hire qualified staff and workers
· 33% found it difficult to retain qualified staff and workers
· 62% found it difficult to devote staff to innovation
· 40% reported a lack of skilled personnel
· 18% reported a lack of marketing capability
Factors assisting innovation:
· 24% gave a high level of importance to hiring university graduates
· 40% gave a high level of importance to hiring graduates from technical schools and colleges
· 68% gave a high level of importance to hiring experienced employees
· 10% gave a high level of importance to recruiting from abroad
· 80% gave a high level of importance to training employees
· 60% gave a high level of importance to using employee teams
Analysis
New to the market presents a methodological concern for many innovation researchers, which lies in
the problem of defining and operationalizing “market.” This study makes no attempt to precisely
determine the market of each respondent: it is assumed that the respondent knows the market in
which the firm competes. Strictly speaking, this lack of definition introduces a large degree of
uncertainty: how do we know that we mean the same thing by the term “market” as the respondent?
However, this may be something of a case of academic isolation from the practitioners being studied.
To a business person, “your market” again has a specific meaning: the set of all potential customers
for a firm’s products and/or services, as well as competing firms with equivalent products and or
services that these potential customers might use. This use of the word is more akin to its use in
“market share”, referring to that portion of all potential customers using a particular product, than to
the more general meaning of the term “market” (as in “free market” or “market failure”) to economists.
Using a “new to the market” measure addresses other problems inherent in innovation surveys
based on the Oslo Manual. Innovations fall into one of three categories: new to the firm, new to the
nation, new to the world. The new to the firm category has already been addressed. A product that
is new to the world is obviously innovative, although it begs the question “How do you know?” or the
statement “Prove it!” Only a very small percentage of new products are new to the world. These
innovations are of great interest, since they indicate extreme competence of the firms and systems of
innovation producing them. That leaves “new to the nation.” Although this measure is perceived to
2The questionnaire is available on the Statistics Canada web-site at
<<http://www.statcan.c a/english/concepts/pdf/science/0497-99.pdf>>
Innovation and the Management of Human Resources
CPROST Report #00-03 9
be of importance to policy makers, it does not necessarily represent the reality of practitioners, who
are more concerned with their markets. These markets may be regional, or they may be
transnational, that is, not corresponding to political boundaries. Markets rarely coincide with national
boundaries, except in cases of highly regulated. As this research program has found, firms serving
non-metropolitan regional markets tend to have low exports, relying on suppliers and customers as
sources of innovation. These firms import knowledge to a region. On the other hand, firms serving
transnational markets export products or services beyond their regional or national milieu, and rely on
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