• List of tables and figures; Acknowledgements; 1. The economics of knowledge creation; 2. The innovation survey; 3. Patterns of innovation: intensity and types; 4. Sources of innovations; 5. Research and development and innovation; 6. Effects of innovation; 7. Innovation and research and development in small and large firms; 8. Innovation regimes and type of innovation; 9. The use of intellectual property rights; 10. Multinationals and the Canadian innovation process; 11. Financing and the cost of innovation; 12. The diffusion of innovation; 13. Strategic capabilities in innovative businesses; 14. Determinants of innovation; 15. Summary; Appendices; References; Index.

'This splendid empirical study of industrial innovation turns away from great isolated discoveries to the continuing process by which firms organise activities for innovations large and small. Innovation emerges as a rational process, pursued by each firm in light of its size, information sources, and resources for protecting and exploiting its discoveries. Bringing into the home market an innovation established abroad differs only in scope from devising a worldwide first.' Richard Caves, Harvard University