Manitoba Innovation Framework

Why Innovation is Important

Technological change strongly influences economic growth. Investments in research and development are closely linked to rising productivity levels, which have helped improve living standards in many advanced economies. Innovative economies typically exhibit the following characteristics:

• higher rates of economic growth
• greater job growth
• higher productivity
• greater investment in people and capital
• greater capacity for the economy to attract and retain highly qualified people.

In Canada, the success of many high-growth, small and medium sized enterprises (SMEs) is significantly connected to innovation. According to Statistics Canada, the following factors characterize successful small and medium-sized enterprises:

• Innovation is consistently found to be the most important characteristic associated with success.
  
  
• Innovative enterprises typically achieve stronger growth or are more successful than those that do not innovate.
  
  
• Enterprises that gain market share and increasing profitability are those that are innovative.

Innovation has become key to improved global competitiveness for many business sectors. More liberal trade and financial markets along with technological advances (particularly in information and communications technology) have reduced geographic and other trade barriers – barriers that previously protected domestic industries from international competition. The new reality for business is that local firms must continually innovate, adapt and create new products and services to compete beyond regional borders.

Next: Manitoba's Innovation System

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