This article presents a top-line summary of findings from our national innovation study, conducted by Digital Journal with research led by RKI. The full research report will be released on May 21. This research is sponsored and supported by Helcim, Spare Parts & Gasoline, the A100, the CIO Association of Canada, Start Alberta, Alberta Innovates, the mesh conference, RKI, and Digital Journal.
Companies that deliberately build innovation into their operations are reporting stronger leadership, greater employee engagement, better technology adoption, and improved business results. Yet most businesses in Canada are not treating innovation as a strategic priority. The gap between leaders and laggards is growing.
In our new national study, we set out to move beyond traditional innovation rankings based on regional outputs or startup activity. We asked a different set of questions: What drives innovation from within companies? What separates the highest performers from those falling behind?
We surveyed more than 1,000 working Canadians across industries and provinces. Our goal was to define innovation clearly, measure it inside organizations, and uncover the specific cultural and structural choices that fuel stronger outcomes.
The result is a first-of-its-kind snapshot showing that innovation is not an abstract idea. It is a set of deliberate decisions that strengthen leadership, attract and motivate talent, improve operational efficiency, and build resilience in volatile markets.
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Defining the innovation spectrum
Our research mapped organizations across an Innovation Spectrum based on how they approach change and growth:
- Stagnant: Companies following established practices with minimal change
- Reactive: Companies making occasional updates in response to external pressures
- Innovative: Companies actively seeking and implementing new approaches
- Game Changers: Companies leading their industries with bold, transformative innovation
Only 5% of organizations in our study placed themselves in the Game Changer category. These companies are not just reacting to challenges — they are actively shaping opportunities in their industries.
Understanding where a company sits on this spectrum is critical. It defines not only current competitiveness but future growth potential.
Innovation is under-prioritized across most companies
Despite broad recognition that innovation matters, most businesses are not acting with urgency.
When asked to rank their biggest business challenges, respondents in our research placed innovation sixth, behind economic uncertainty, operational costs, and talent management. Innovation was acknowledged but treated as a lower priority compared to immediate financial concerns.
Game changers take a different view.
They do not wait for stable conditions to invest in innovation. They treat it as a foundational strategy even when market pressures are high.
This mindset difference is one of the clearest dividing lines in our research. Companies that delay innovation investment risk falling further behind as economic and technological change accelerates.
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Innovation strengthens resilience by shifting internal barriers
Our research identified three major barriers companies face when trying to innovate:
- Budget constraints
- Resistance to change from employees
- Lack of skilled, innovative talent
Stagnant and reactive companies struggle most with budget challenges and internal resistance. Innovation efforts often stall before they can show results.
Game changers have shifted the conversation.
For them, the biggest challenge is finding and developing the right talent to sustain innovation momentum. Budget constraints and resistance to change have become secondary concerns.
Organizations that invest early to overcome cultural and financial obstacles move into a stronger position.
Those that delay remain trapped in a cycle of operational short-termism.
Leadership commitment is a non-negotiable foundation
One of the strongest signals from our research is the role leadership plays in advancing innovation maturity.
Compared to stagnant organizations, game changers reported:
- 2x stronger talent development and team leadership
- More than 3x greater leadership mentorship and exposure
- More than 2x stronger leadership commitment to innovation
In game-changing companies, leaders do not just approve innovation budgets. They model the behaviours, mentor the teams, and drive the strategic focus needed to embed innovation across the organization.
Companies that treat leadership development and innovation as separate efforts often struggle to build sustainable momentum.
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Culture amplifies leadership and sustains innovation
Leadership creates the conditions for change, but culture determines whether innovation takes root.
Game-changing organizations consistently create cultures that support:
- Collaboration across departments, startups, universities, and research partners
- Formal support for experimentation and smart risk-taking
- Continuous learning and professional development
In stagnant companies, experimentation is often discouraged in favour of operational efficiency.
In game-changing organizations, it is recognized as a key driver of future competitiveness.
Building a culture of innovation requires more than slogans. It needs to be reflected in how teams collaborate, how failure is treated, and how success is recognized and rewarded.
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Structure and operations reinforce innovation maturity
Innovation must be embedded into structures and daily operations, not just leadership messaging.
Compared to stagnant organizations, game changers are significantly more likely to have:
- Dedicated innovation champions or formal innovation teams
- Budget allocations specifically for innovation initiatives
- Learning and development programs focused on building innovation capabilities
- Collaborative spaces used intentionally for brainstorming and experimentation
Many of these structures can be created without major new spending. What distinguishes game changers is their consistent prioritization of time, space, and leadership attention toward innovation goals.
Organizations that assume innovation is inaccessible because of budget constraints are often missing lower-cost operational changes that could move them up the spectrum.
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Innovation drives competitive advantage in talent
Innovation also reshapes how employees experience and evaluate workplaces.
In our research:
- 57% of respondents said they would consider moving to a different province to work for a more innovative company
Internally, the impact is even more visible:
- 68% of employees at game-changing organizations said they feel motivated and engaged
- Only 23% of employees at stagnant organizations reported the same
Companies that offer dynamic, forward-looking work environments attract and retain better talent.
Those that neglect innovation risk losing their best people to competitors who invest in creating cultures of adaptability and growth.
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Technology performance improves with innovation maturity
Artificial intelligence (AI) is widely discussed, but our research shows that realizing value from AI depends on an organization’s innovation maturity.
While 76% of organizations reported some use of AI, game changers achieved far greater outcomes:
- 1.5x greater improvements in operational efficiency
- 2.5x stronger gains in customer experience
- 2.5x higher adoption of data-driven decision-making
- 2.5x faster decision-making processes
Technology alone does not create competitive advantage.
Organizations that embed innovation into leadership and culture use AI to accelerate strategic goals.
Those that treat technology adoption as a surface-level exercise see far less return on investment.
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Innovation maturity correlates with business performance
Innovation maturity is closely tied to stronger business outcomes across every key dimension.
Compared to stagnant organizations, game changers report:
- 3x greater strength in leadership and strategic vision
- 2x greater strength in employee experience and corporate culture
- 2x greater strength in customer service quality
- 4x greater strength in operational efficiency and productivity
These capabilities are not secondary. They are essential for building resilience, responding to market shifts, and sustaining long-term growth.
Organizations that operationalize innovation outperform those that rely on incremental improvement alone.
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Innovation is an ongoing system, not a project
The most important lesson from our research is that innovation is not a one-time achievement. It is an ongoing system built on leadership commitment, cultural reinforcement, structured support, and strategic measurement.
Companies that succeed at innovation invest in:
- Engaged leadership aligned with innovation goals
- Talent development programs that encourage adaptability
- Cultures that normalize collaboration, learning, and experimentation
- Structures that protect and scale innovation efforts
- Continuous tracking and refinement of innovation outcomes
Innovation maturity is closer to maintaining fitness than achieving a milestone. It requires steady investment, adaptation, and focus.
Our full research findings, including sector-specific and regional insights, will be packaged and released on May 21. Stay tuned for the complete report and deeper analysis. Sign up here if you want to be notified when it’s released.
