Technology and the Canadian Forest-Product Industries ... - ArtSites

ing, investment, industrial relations) activities of the productionsystem.'? An increased commitment to R&D is not all that is required.The aim of the following recommendations is to encourage thecommercial application of the results of R&D so as to maximize thecompetitiveness of the Canadian forest-product industries. Theserecommendations, which are directed toward industry, the cooperativeresearch laboratories, and government, are concerned with, first,the long-range production strategies of forest-product corporations;second, the nature of technological planning ("technology strategies");and, third, the nature of the forestry sector R& D system. Finally,suggestions are offered on how business and government leadersmight help stimulate greater concern for innovation in the Canadianforest-product industries.Toward Flexibility and Value Maximization inForest-Product ManufacturingIn the past the adoption of "proven" equipment and cost rrurumizationhas taken precedence over innovation in the Canadianforest-product industries. Technological planning has typically beenan implicit process and emphasized adaptive R&D, despite a fewexamples of Canadian technological leadership, such as the developmentof twin-forming technology (see chapter 3). Characteristically,however, Canadian forest-product firms (and equipment suppliers)have made no attempt to initiate technical or product change. Only ahandful of firms have developed noteworthy in-house R&D programsand sought to establish themselves in the technological vanguard ofthe industry.The emphasis on adaptive R&D and conservative attitudestoward innovation have been consistent with Canada's historic roleas a marginal supplier of bulk commodities. Canada will and shouldcontinue to be an important world producer of bulk commodities.However, fewer plants are needed for this, because the size and speedof machines have increased and demand has declined. On the otherhand, markets for higher value and more differentiated forestproducts have grown. Moreover, if the Canadian forest-product industrieswish to escape their overwhelming reliance on the United Statesmarket, Canadian firms will have to cater to the distinctive requirementsin terms of type, quality, and size of products of alternativemarkets, especially in the Pacific Rim. Therefore, if the Canadianforest-product industries are to develop their full potential, they willincreasingly have to emphasize principles of flexibility and value maximizationin their production processes. They will also have to make103