RESEARCH

ABSTRACT

Despite strong signs of extensive innovation and usage of sophisticated technologies, the natural resource industries are frequently classified as low technology because of their performance on standard innovation indicators. Drawing upon analysis of the compulsory Survey of Innovation and Business Strategy (SIBS) administered by Statistics Canada, this paper investigates how and why natural resource industries innovate. We show that natural resource firms are leaders in the use of advanced technologies, rely less on intellectual property protection and R&D in favor of quasiintegration with suppliers as a source of innovation that is often fueled by regulatory compliance.