A study conducted for the National Bureau of Economic Research demonstrated that firm size, research and development intensity, along with investment in equipment enhances the likelihood of having both process and product innovation
Both these kinds of innovation have a positive impact on productivity, especially process innovation.
Many managers, though, will acknowledge that they don’t understand their innovation output or how to maximize it. Or they are concerned that they don’t have the capacity to be truly innovative, to “jump the curve” as disruptive innovation is sometimes described. By jumping the curve, companies plan to do 10 times better than in the past, rather than seek to improve products by 10%. If a productivity or efficiency increase of 10% spells the difference between profitability and loss, then incremental innovation may be exactly right for your firm. At the very least, it will get you focused on building a culture of innovation, and that first step could be the most important one.
To start your company on the path, here are some recommendations for actions to stimulate innovation inside your workplace.
- Foster cross-pollination by bringing in a diversity of people to work on a problem
- Expose the group to fresh ideas – deliberately take the perspective of others and attempt to view your problem from those perspectives
- Breakdown hierarchy and put a premium on innovative ideas regardless of where they come from
- Create a sense of urgency by setting an aggressive time table
- Reward creativity and innovation in a personal way
- Reward and celebrate incremental successes… not just the attainment of a big goal
- Foster a playful and challenging environment
Resource Room
Learn more about these programs, intended to assist your pursuit of innovation.
Innovation Vouchers: Innovation vouchers help small technology and knowledge-driven businesses in Alberta get their ideas and products to market faster. Companies can apply for vouchers worth up to $10,000 or $50,000 to use at Alberta’s public and not-for-profit service providers for business and technology development services. During the program’s pilot, preference will be given to businesses in emerging growth sectors such as clean technology, health, bio-tech and ICT.
For more information, go to: www.technology.gov.ab.ca
Alberta Scientific Research and Experimental Development Tax Credit: SR&ED tax credit benefits businesses of all sizes and in all sectors that conduct research and development that will lead to new, improved or technologically advanced products or processes. The credit is worth 10 per cent of a company’s eligible expenditures up to $4 million, for a maximum credit of $400,000.
NRC-IRAP: The National Research Council (NRC) supports Canadian small and medium-sized enterprises (SMEs) through the Industrial Research Assistance Program (IRAP) by offering services such as:
- Advisory technical and business services
- Networking and linkages
- Competitive technical intelligence
- Financial assistance
Provincial Research and Innovation Organizations
The Government of Alberta has created and funded various organizations that support the province’s pursuit of an innovative and diverse economy. Contact one of the organizations below for information on support in your area of interest:
