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Fertile ground : Cultivating a talent for innovation

A report from the Economist Intelligence Unit Supported by the Government of Ontario, Canada

Executive summary

For most companies, the ability to innovate is now the single most important predictor of future
growth. Eighty-three per cent of respondents to a survey conducted in the autumn of 2008 by
the Economist Intelligence Unit say innovation is vital to their long-term success. This is particularly important in view of the growth of the knowledge-based economy and the globalisation of markets- the ability to serve any customer anywhere.

Yet the globalisation of markets has not been matched by a uniform distribution of innovation
capacity; some regions are simply more fertile than others. This report explores what qualities make a location ripe for innovation and how companies should build considerations of “place” into their innovation strategies. Key findings include:

* The most innovative locations are those with the healthiest supplies of talent. Ninety-two per
cent of respondents consider access to talented staff to be critical for innovation. The most important external factor at national level that affects companies’ ability to innovate, they say, is the quality of education. Education plays a role in the tendency for like-minded organisations to “cluster”1, or locate near each other. Organisations are willing to pay a significant premium for access to talent, and proximity to a cluster is considered by survey respondents to be the most important city-regional factor contributing to their ability to innovate.

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