Technology and the growth of the manufacturing firm

Abstract

Using a linked survey datasets in Canadian manufacturing (The Survey of Advanced Technology in Canadian Manufacturing the Annual Survey of Manufactures surveys), complementarities among 28 different Advanced Manufacturing Technologies (AMT) are empirically tested as well as substitute qualities, based on the success of the firm. Hypotheses generated from the AMT literature are explored. The main results show evidence against the classic theory that all forms of AMT are complementary. In addition, complementarity of AMT appears to aid in the growth of Canadian firms more so than short-term profit and productivity. Finally, there is evidence to suggest size and industry classification has an effect on AMT complementarity.