Innovation and Business Strategy: Why Canada Falls Short

Abstract

This article summarizes the report of the Expert Panel on Business Innovation appointed by the Council of Canadian Academies. The report presents a fresh look at innovation as an economic process rather than primarily as a science and engineering activity. Noting that Canada’s productivity has been falling further behind that of the United States and many other advanced countries for the past 25 years, the report argues that lagging productivity growth has been due to subpar innovation. Innovation is interpreted broadly to encompass the day-to-day activites of all kinds of businesses looking for new or more efficient ways to serve the needs of customers. The panel concludes that too many businesses in Canada are technology followers, not leaders, and that a fresh discussion on innovation in Canada is needed, one that focuses on the factors that influence adoption of innovation-based business strategies.

Keywords

• innovation
• business