Innovation originates from the firms and the institutions that make up the economy's actors. Using a comprehensive survey of Canadian firms in the manufacturing sector, this book examines the variety of actors that contribute to the innovation process.

Studies of economic phenomena must necessarily reduce complex processes to their essence. At times, this simplification can obscure important facets of the process. Rosenberg (1976) has noted that studies of innovation have often focused on discontinuous events, rather than on the continuous improvement process that he felt was important. Innovation studies have also tended to focus heavily on the role of one type of knowledge, arising from scientific R&D laboratories, and have paid less attention to the importance of engineering and other forms of knowledge. Moreover, with this focus on R&D, the importance of bringing products to market, mustering the human resource requirements, and managing the process have been given less attention.

In this study, we have profiled a range of innovation types and the actors that participate in the innovation process. This has enabled us to place the R&D-centric knowledge creation process in context. We have shown that there are competing systems at work and that some act as complements, while others act as substitutes to R&D. We have also shown that the various parts of the innovation system fulfil different functions. And together they constitute the Canadian innovation system in the manufacturing sector.