Canadian findings show companies do not have innovation top-of-mind
TORONTO, Dec. 18, 2013 /CNW/ - Canadian technology, entertainment and
communications companies are struggling with innovation—enthusiasm is
low, and businesses are not making it a priority when it comes to
allocating funding or resources.
According to PwC's Global Innovation Survey, while nearly nine in ten (88%) Canadian companies in this sector are
aiming for at least moderate growth over the next five years, only 27%
have an eager appetite for innovation. Although this figure sits
slightly above the global average (21%), competitors worldwide are
still spending more: Canadian businesses are allocating just 7.8% of
their revenue ($21 million) to innovation, compared to 10.38% ($111
million) in the UK and 9.64% ($200 million) globally. In fact, Canadian
businesses are far more likely to rely on the government to fund the
innovation programs they do initiate, with half of the respondents in
these categories relying on federal and provincial incentives.
Respondents in these industries also lack the structures necessary to
effectively manage innovation. And, even though Canadian companies are
more likely than their global counterparts to think that having
innovation structures is important, they are in fact less likely to
actually have them in place.
"In Canada and worldwide, enthusiasm for innovation is low—and this is
reflected in how much is spent on these initiatives," says Darren
Henderson, National Technology and Communications Consulting & Deals
Leader at PwC. "Part of the issue, however, is in the lack of
frameworks and processes needed to build an innovative culture.
Building the necessary structures starts at the top, but everyone in an
organization has a role to play in bringing new ideas and creative
thinking to the table."
In terms of where companies are looking at innovating, products rank at
the top of Canadian businesses' lists, with 35% indicating this as a
high priority—well ahead of customer experience (8%) and business
models (4%). And, it looks to be a competitive space to play in, as
both the US and the UK also list products among their top areas to
"In the technology, communications and entertainment sectors, companies
need to set themselves apart, and these results show that to do this,
businesses feel that product innovation is the way to go," says
Henderson. "Product innovation is a key growth driver, but innovation
is a total package, and one that is essential to the success of
industries like these that thrive on new ideas. An eye to innovation is
crucial and means looking at everything from the business model to the
customer experience to the corporate culture."
About the Global Innovation Survey
The largest and most comprehensive study of its kind, PwC's Global
Innovation Survey gathered insights from 1,757 C-suite and board-level
executives from more than 25 countries across more than 30 sectors. For
the first time, Canadian executives shared their experiences in this
study to explore three key areas: how they're using innovation to drive
growth; how approaches to innovation are changing; and how they're
delivering tangible results..
Findings from the Global Innovation Survey are included in the global
report - Breakthrough Innovation and Growth and a Canadian report with sector specific results, both available online or from the media
About PwC Canada
PwC Canada helps organizations and individuals create the value they're
looking for. More than 5,700 partners and staff in offices across the
country are committed to delivering quality in assurance, tax,
consulting and deals services. PwC Canada is a member of the PwC
network of firms with more than 180,000 people in 158 countries. Find
out more by visiting us at www.pwc.com/ca.
Follow PwC on Twitter at @PwC_Canada_LLP and on Facebook at www.facebook.com/pwccanada.
© 2013 PricewaterhouseCoopers LLP, an Ontario limited liability
partnership. All rights reserved.
PwC refers to the Canadian member firm, and may sometimes refer to the
PwC network. Each member firm is a separate legal entity. Please see www.pwc.com/structure for further details.
SOURCE: PwC (PricewaterhouseCoopers)
For further information:
Contact: Emily Abrahams
T: +1 416 814 5734
T: +1 416 947 8983