Are world-first innovations conditional on economic performance?

The objective of the research is to determine whether past economic performance has an impact on a firm's ability to innovate. Specifically, the concern is with producing a world-first innovation, a Canada-first innovation and a first-to-the firm innovation taking prior performance into consideration. Ordered logistic regression coefficients for market share, labour productivity and profit are statistically significant for seven out of 12 industries. However, when compared to other firm level characteristics such as strategies, competitive environment, information sources, R&D and use of patents the importance of economic performance fades quite drastically. Across all industries this study found that internal information was a very important factor for innovation. In three of the 12 industries (clothing and textiles, metal, and electric and computer) internal, external and general information were utilized by managers extensively. Managers in the wood and paper, furniture, vehicles, and miscellaneous industries utilize internal and general information. While the plastics and machinery industries rely on internal and external information sources. The remaining industries food, non-metal, and petrochemicals, rely on internal sources of information exclusively.