Beliefs About Innovation Inaccurate

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    Canada’s weak innovation performance is partly a result of Canadian business leaders’ sometimes inaccurate beliefs about the innovation environment, says a Conference Board of Canada report based on results from the World Economic Forum’s ‘Global Competitiveness Survey 2011-12.’  “Canadian business leaders may be less inclined than their global counterparts to adopt innovation as a business strategy because they do not see it as rational or necessary in their current environment,” says Daniel Munro, principal research associate. “Many Canadian business leaders feel that competitive pressures are not strong enough to motivate innovation, capital markets are too weak, and the tax burden is too high. But their perceptions do not always align with reality.” The report, ‘From Perception to Performance: How Canadian Business Leaders View the Innovation Environment,’ shows Canada ranks 11th among the 142 countries ranked on innovation in the WEF’s report, trailing key competitors such as Japan, the United States, and Germany as well as small advanced economies such as Switzerland, Sweden, and Finland. Perceptions of high taxation, less intense competition, and weak capital markets help to explain why Canadian firms are less likely to innovate than global peers.