By DMZ, Tech Incubator
July 31, 2024
Canada’s Innovation Report Card gave us a C, here’s what to know.
Top four takeaways from our report with the Canadian Centre for the Innovation Economy.
As part of the Canadian Centre for the Innovation Economy (CCIE), DMZ fueled the development of Canada’s 2024 Innovation Report Card, which gave our country’s innovation performance a C. Although we didn’t ace it, knowing where our shortcomings lie is the first step to boosting our innovation game.
There’s a lot of unknown about the future of the innovation economy in Canada. 2024 brought us many curveballs – declining capital for early-stage companies, recent changes in capital gains taxes, more entrepreneurs going back to their day jobs and a soaring cost of living. While the dust begins to settle, the best thing we can do as an innovation ecosystem is take note of where we stand.
Here are our four key takeaways for how our innovation ecosystem can level up.
- Adopting the 3 pillars of innovation: Capacity, activity and results.
- Embracing competition to boost innovation.
- Stepping up our patent game to compete globally.
- Bridging the gap from early stage success to sustainable growth.
Adopting the 3 pillars of innovation: Capacity, activity and results.
Canada’s innovation capacity focuses on resources for human capital, knowledge and entrepreneurship. Our activity centers on investments and early entrepreneurial steps, while our results gauge the impact and productivity of innovations.
So why does all this matter?
Innovation is vital for economic growth. Having a high innovation capacity breeds creativity, constant activity transforms these ideas into action, and the results can be measured by real-world impact.
In a nutshell, these fundamentals are the keys to Canada staying ahead in the global game and thriving on the world stage.
Embracing competition to boost innovation.
Healthy competition can make a big difference in driving innovation and economic growth. Unlike other countries, Canada’s business revenue and development (R&D) has been declining steadily over the past 20 years. This downturn is tied to factors like lack of competition, complacency and risk aversion. Too many markets in Canada currently operate as monopolies or near-monopolies; just think of our telecommunications and grocery industries.
To foster innovation and growth, we need to adopt new legislation that encourages a competitive spirit within the business ecosystem. This will open the door for new entrants, like startups, to drive the innovation Canada desperately needs.
Stepping up our patent game to compete globally.
Canada’s patent game is seriously lagging, ranking near the bottom globally.
To turn this around, we need to boost business R&D and collaborate with universities to turn research into new products and services. Patents provide Canadian companies security, by protecting their ideas and cementing their ideas on the world stage.
While initiatives like the Innovation Asset Collective and Ontario’s IP Office are a great start, we need to do more to keep our intellectual property from slipping through the cracks and to thrive in the global economy.
Bridging the gap from early-stage success to sustainable growth.
The first step to becoming an entrepreneur? You need the guts to start a business. Canadians are known for our culture of individual achievement, with more people starting new businesses here compared to any other country. The Innovation Report Card gave us an A in total early-stage entrepreneurial activity. Our desire to innovate is commendable. However, our success isn’t translating into scaling-up our homegrown businesses into anchor companies.
Although Canada’s 2024 Innovation Report Card gave us a C, a lot can change in a year. We need to provide entrepreneurs with the essential resources and capital to grow and scale. Otherwise, we won’t be able to create the next Canadian success story – like Shopify or 1Password.
Programs like DMZ’s Incubator help early-stage entrepreneurs scale their business. With our expansive investor network, 60+ hours with our Experts-in-Residence and a $10K entry grant, founders are given the tools to take their business to the next level.
For the full scoop on Canada’s 2024 Innovation Report Card, you can download the report here.
Are you a tech founder with exceptional vision, innate talent and a coachable spirit that’s ready to scale? Or does one come to mind? Apply for our next Incubator cohort, which kicks off this September. Applications close on August 11.
