The Impact of Input in Scientific Research and Experimental Development on the Survival of Immigrant Firms in Canada

The academic literature validates the beneficial relationship between immigrants, innovation, and economic prosperity. Immigrants are not only the important contributors to the Canadian workforce but also the indispensable source for entrepreneurships and the innovative capabilities of firms in Canada. This study aims to examine the impact of the expenditure qualifying for the Scientific Research and Experimental Development (SR&ED) on survival of firms owned by immigrants. We apply the survival models to the Canadian Employer-Employee Dynamics Database (CEEDD). The results show that the input in SR&ED significantly reduces firms’ risk of closure. Firms’ and the owners’ characteristics, such as total capital, diversity, human capital, and immigration category, are also key factors for the firm survival.