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In a globally competitive world, innovation is an essential component of long-term success. For commodity industries in particular, global companies will dominate, with niche-market, nimble, small companies providing specialized products to select customers. Both will require technology. To survive in international markets, Canadian pulp and paper producers must develop integrated business and technology strategies to meet global competition from low-cost fibres and state-of-the-art mills. For competitive positioning, and for increased returns on investment, the mandatory progress in cost reduction must be balanced with revenue growth through new product innovations. Companies can leverage their limited resources through participation in the programs of a research institute. Paprican, as an example, provides access to broadly based technical skills in areas related to cost reduction, and environmental sustainability. At the same time, it delivers world-class, strategically driven research that enables new product design and development. For technologies related to public policy directives such as environmental performance or global warming initiatives, governments must participate as stakeholders in the solutions to their issues. Key words: pulp and paper industry, international competitiveness, research and development, research institutes, innovation, return on investment, multidisciplinary research, public policy

Technology: The classic Canadian dilemma—Short-term gain for long-term pain!