Inclusive Innovation Monitor: Tracking growth, inclusion, and distribution for a more prosperous and just society

Executive Summary

Innovation is essential to the economic and social well-being of Canadians. The development of new or improved services, products, and processes shapes economic performance and provides opportunities for individuals and communities to thrive. Yet, innovation in Canada has been lackluster compared with our international peers, and its benefits have been poorly distributed among people and communities. Moreover, evidence increasingly suggests that inequality of opportunity and resources “obstructs, subverts, and distorts” innovation and growth by preventing the development and effective use of skills, knowledge, and creativity. Not only does innovation have distributive consequences, but also the distribution of opportunities and resources has consequences for innovation and growth.

The COVID-19 pandemic and economic crisis have exacerbated these challenges. Some businesses have adapted to new conditions by shifting production and processes to serve customers even more effectively than they did before the pandemic. But many are struggling merely to survive. At the same time, economic, social, and health inequities among people and communities have been revealed and exacerbated. Women, low-wage, and precariously employed workers were among the first to lose their jobs and will face economic hardship for the foreseeable future. Both before and during the pandemic, Canada’s innovation performance has been sluggish, and its egalitarian aspirations unrealized.