Skip to content

Solving innovation riddles

How many times have you heard, "Innovation is the key to business success." It makes plenty of sense.


How many times have you heard, "Innovation is the key to business success." It makes plenty of sense. But why, then, do so many Canadian businesses have such a difficult time with innovation?

Canada ranks 14th out of 17 industrial countries in terms of innovation, earning a "D" grade in the Conference Board of Canada's 2010 international report card. In terms of the research and development (R&D) spending that often fuels innovation,

Canada scores poorly in the number of international trademarks filed per capita.

The good news is that innovation is easier to achieve than one might think.

According to a 2010 Angus Reid survey, innovation is a priority for 74% of the Canadian entrepreneurs.

Innovate incrementally

Innovation generally brings to mind some dazzling new gadget or technological breakthrough. But the reality is quite different: 95% of real-world business innovation is "incremental innovation" - using existing technology to solve new problems or to do more with less.

Examples of innovation include smarter ways of designing an existing product, organizing production and improving processes to cut costs and buy a new piece of equipment with the money saved. It can also mean trying a new marketing idea.

Innovation occurs in all areas of operations: in the business model, supply chain, operational processes and service delivery.
Don't look for a magic silver bullet. Focus on continuous incremental improvements.

How to develop an innovative mindset

Businesses managers must forge an innovation strategy with staff members. Let's face it: employees are often a business's best source of ideas.

Don't just push your own ideas. In addition to employees, listen to your clients, suppliers, financiers and other market participants. You should also take steps to educate and inform yourself. Study innovation, change and creativity.

Encourage R&D. More than 70% of Canada's small and medium-sized businesses do no R&D at all. But R&D is the spark for the innovation engine. Without a spark, it's hard to get moving. But you can get moving by collaborating on projects with industry peers or leveraging contacts at universities or research centres.


About BDC

Canada's business development bank, BDC puts entrepreneurs first. With almost 1,900 employees and more than 100 business centres across the country, BDC offers financing, venture capital and consulting services to 29,000 small and medium sized companies. Their success is vital to Canada's economic prosperity. www.bdc.ca