A simple innovation definition is to say that innovation is to make (something) new or to do something in a new way.
But a business innovation definition also has to include the concept of improvement; to innovate in business is not just to do something differently, but to do or make something better.
A good business innovation definition, then, would be: Business innovation involves developing new products or improving existing technologies, processes, designs and marketing to solve problems and reach new customers.
Innovation has long been viewed a problem in Canada. For instance, a 2009 report by the Council of Canadian Academies that analyzed the innovation performance of Canadian businesses, Innovation and Business Strategy: Why Canada Falls Short, presents statistical evidence stretching back almost five decades to show how lagging productivity growth has been due to sub-par innovation.
In early 2010, a report card released by the Conference Board of Canada gave Canada a "D" for innovation, ranking the country 14th among 17 industrialized nations. The grade reflects inadequate levels of research and development (SR&ED) and investment in capital assets, such as property, machinery and information and communications technologies.
So whether you use a broad innovation definition such as the one above in this article, or a narrower one that ties business innovation to research and development, the point is that Canada is not doing enough of it.
How can we improve our innovation track record? Jean-René Halde, President and CEO of the Business Development Bank of Canada, says that the greatest source of innovation will always be business leaders with a sustained commitment to doing things better and a willingness to seize opportunities – but first business leaders have to adjust their mindsets.
"Companies of all sizes must understand that their company's competitiveness depends on their capacity to innovate and to adjust their investment decisions accordingly. Embrace risk-taking and aim higher. Aim for the top" (The Innovation Challenge, Business Development Bank of Canada).
