Pathways to Inclusive Innovation: Insights for Ontario and beyond

Executive Summary

In today’s economic landscape, innovation has become the engine powering the growth and competitiveness of firms, sectors, and regions. However, the pursuit of innovation at all costs can widen inequalities and benefit some while leaving others behind. Regions such as Silicon Valley, which are often held up as exemplars of innovation, are also some of the most unequal.

To fully capture its value while mitigating its risks, initiatives designed to support innovation should also take into account the distribution of economic gains. Distribution-sensitive innovation policies (DSIPs) recognize this need. They encourage economic growth and technological progress, while also aiming to spread their benefits broadly – to disadvantaged, displaced, or at-risk groups.

Within Ontario, policymakers, employers, and training providers face the challenge of balancing innovation-driven economic growth goals and inclusion considerations for workers, particularly for those who hold fewer educational credentials and economic advantages. Yet innovation and inclusion are often approached as separate issues.