Factors affecting biotechnology innovation in Canada

Innovative activity is measured as the natural log of the number of products/processes a firm has at different stages of the innovation spectrum. [...] Changes in the biotechnology industry and broader social and economic issues underscore the need to understand the structure and characteristics of biotechnology firms and the impact of firm characteristics, strategies and environmental factors on innovative capacity and results. [...] Taking into account the availability of data and specific characteristics of the Canadian biotechnology industry, the most suitable indicator of innovative activity is the total number of products/processes across all stages of development for a firm.2. [...] The relationship between the number of products/processes a firm has (either in total or in the early or late stage of the innovation process) and measures related to the drivers of innovation is captured using equation (1). [...] Here, the natural log of the number of products is regressed on covariates related directly to the drivers of innovation: 2. A caveat to using this measure of innovation is that it does not account for the value of an innovation.