Competitive Characteristics of Small and Medium-sized Manufacturing Firms in the US. and Canada

ABSTRACT This paper examines the competitive characteristics of small and medium-sized manufacturing firms (SMFs) in a Canada-U.S. crossborder region (the Niagara Frontier). Particular attention is given to the innovation and business performance of comparably-sized firms on both sides of the border. The results of two firm-level surveys are presented. A comparative analysis of the two groups suggests that Canadian Sh4Fs exhibit significantly stronger export and innovation performance than their US. counterparts. The results also suggest that U.S. firms face tougher competitive difficulties arising fiom specific national and regional circumstances, including shortages of skilled labor, higher corporate tax rates, rising import competition, and a more complex regulatory environment. The implications of the empirical results are discussed in the context of policy options for regional economic development in crossborder zones such as the Niagara Frontier