George Brown College Toronto Next: Return on Innovation

Research Report October 29, 2012

Research Objectives
The overall objective of this research is to better understand the attitudes of employers toward innovation. Specific research objectives include: 1. Determine how GTA (Greater Toronto Area) employers define innovation and how that may vary by key sub-groups. 2. Better understand how GTA employers view innovation and the role that they see for PSE (Post-Secondary Education) institutions in innovation training and R&D partnerships. 3. Better understand what essential employability skills are most important to employers, to contribute to innovation, creativity and productivity. 4. Better understand the value and return employers see for innovation. 5. Identify the barriers that are preventing employers from investing more significantly in driving innovation.

Methodology
Quantitative research survey via telephone, using appropriate industry SIC codes to identify target companies (see next slide for complete list of sectors).

Sample screening criteria were as follows:

Must be employed in one of two key positions: HR Managers: responsible for the recruitment of new hires from college or university Line Managers: interviewing and making the final decision on selection of new hires from college or university Hired college or university graduates directly out of school in the past two years, or Very or somewhat likely to hire college or university graduates directly out of school in the next two years More than 3 employees

Total sample size was n = 314.

Fieldwork was conducted August 15 September 13, 2012.

Average interview length was approximately 20 minutes.

Methodology (contd)
Within this sample, a number of sub-groups are included:

Sub-Group Description
Sectors Health Care Hospitality & Culinary Arts Commerce & Communications* Construction, Computers & Software** IT/Engineering/Computers Construction High Tech*** Community & Social Services Fashion, Arts & Design

Sample Size
n=50 n=50 n=55 n=81 n=40 n=41 n=79 n=25 n=26

Sub-Group Description
Organization Size Small (4-19 employees) Medium (20-99 employees) Large (100+ employees) Organization Location City of Toronto (416 area code) GTA outside Toronto (905 area code) Position Line Managers HR Managers

Sample Size
n=113 n=134 n=67

n=148 n=166

n=158 n=156

*Includes business and personal services, financial services, communications and social media. **Includes construction, contractors, architecture, engineering services, IT, computer technology and software development. ***Not mutually exclusive from other groups, includes high tech companies from Commerce & Communications, Construction, Computers & Software and Fashion, Arts & Design sectors.
4

Methodology (contd)
Different symbols appear throughout the report to aid interpretation: Throughout the report, circles and squares have been used to distinguish results which are statistically significant. = indicates findings which are statistically higher (calculated at a 95% confidence level) than other sub-groups. = indicates findings which are statistically lower (calculated at a 95% confidence level) than other sub-groups. = indicates findings which are statistically higher (green) or lower (red) than total sample, calculated at an 80% confidence level.

On the total sample (n = 314), differences of +/- 5.6% are statistically significant at the 95% confidence level.

Summary of Findings

Summary of Findings
Defining and Understanding Innovation Only about 6 in 10 employers feel that they understand the meaning of innovation very well Unaided definitions of innovation frequently included the term new For example, new ideas, things, ways, products or technology Although a variety of unaided definitions for innovation emerged, responses tended to revolve around the top 4 definitions:
Creating new services / products / processes Keeping up / staying ahead on the newest tech / ideas New ways / improving existing services / processes Out of the box / creative thinking

In the High Tech sector, innovation is more about creating new services / products / processes and less about improving existing services / processes and out of the box / creative thinking In larger companies, innovation definitions shift slightly towards more emphasis on customer service and risk-taking

Summary of Findings
Defining and Understanding Innovation (contd) On a aided basis, most employers say that innovation is about finding new ways to improve existing services, products or processes and finding creative ways to solve problems
On an aided basis, employers are much less likely to say that innovation is primarily defined as creating / inventing new things

Productivity is more important to employers than innovation or creativity, which are viewed as equally important Productivity still trumps innovation and creativity, no matter how respondents define innovation
Innovation is more important than creativity in the High Tech and Construction sectors, but productivity is still the most important of all

There is strong agreement that innovation is a tool to gain competitive advantage and that it can improve the economic health of a region Those in Construction and High Tech sectors are the strongest believers in connection between innovation and gains in productivity

Summary of Findings
Employer Interest, Perceived Return and Barriers to Investment in Innovation When innovation is tied to concrete, measurable outcomes, interest in investing in innovation is very high, especially if it helps make an existing process more efficient or effective
Interest in investment in innovation is highest in High Tech sector There is less interest in investing in innovation for productivity or long-term profitability in small companies

Employers see investing in innovation as providing a good return on investment

High Tech is sector that sees most significant ROI in technology and investment in new products / services Small companies are less convinced of the ROI that investing in innovation would provide

Shortage of innovative employees to hire is the largest barrier to employers investing in innovation, along with concerns about long-term ROI
Shortage of innovative employees to hire is #1 biggest barrier for High Tech employers

Over half of employers feel that a dependence on old economy industries or a lack of private sector funding are causing Canadas low levels of innovation The majority of GTA employers have introduced a new product and significantly improved an existing product in the past year About one-third of those that introduced a new product in the past two years solicited investment and received support
9

Summary of Findings
Innovation in The Greater Toronto Area Less than half (42%) of respondents say that Toronto is more innovative than other major Canadian cities; three-quarters (76%) say Tronto is at least as innovative as other major Canadian cities.
Perceptions of Toronto as being more innovative are highest in the Construction sector, and amongst the keeping up / staying ahead of the newest tech / ideas definition group; and lowest amongst the improving existing services / processes group

Half of employers believe government should be taking lead responsibility for investing in innovation in the GTA, well ahead of expectations of private sector companies (21%)
Expectations of Post Secondary Education institutions (PSEs) at 16%, is almost as high as for the private sector Those that define innovation as creating new services / products / processes or improving existing services / processes are more likely to believe that the private sector should be responsible for investing in innovation Highest expectation of government innovation leadership is in Hospitality & Culinary Arts; lowest in High Tech and Construction

Telecommunications, and especially Information Technology, are perceived by employers to be the most innovative sectors The vast majority agree that multiculturalism has a positive impact on Canadas ability to innovate More than half (55%) of respondents could not name a current and successful innovator in the GTA neither an organization nor an individual
10

Summary of Findings
Employee Skills Expectations of Employers The most important aspect of innovation-related skills is the ability to learn new things quickly Employers coalesce around ability to learn new things quickly and applying problem-solving skills as the top 2 most important innovation-related skills The most important aspect of creativity-related skills is the ability to think creatively Creative thinking clearly stands out as the most important creativity-related skill A strong work ethic, efficiency and high quality work are most important productivity-related traits for new graduates
When forced to choose, a strong work ethic trumps all else

Overall, the single most important new graduate skill / ability employers want is a strong work ethic; followed by doing high quality work and learning new things quickly

11

Summary of Findings
Role of Post-Secondary Institutions in Innovation Training Large majority of employers see PSEs as having an important role in equipping employees with innovation skills
Those who see innovation as creating new services / products / processes are more likely to believe that PSEs should play a role in equipping graduates with an understanding of innovation

More employers see Colleges than Universities as the PSE of choice to equip graduates with innovation skills
Those who view innovation as keeping up / staying ahead on an unaided basis, are more likely to state that Colleges are the best PSEs for equipping students with innovation skills Employers who define innovation as inventing new or improving existing services, products or processes or finding new ways to do more with less on an aided basis, are more likely to see Colleges as better than Universities for equipping students with innovation skills

Relatively few employers are aware of partnership opportunities with Colleges and Universities Levels of past experience with R&D partnerships with PSEs is low, and skews towards Universities Although relatively few have experience with R&D partnerships, there is interest in learning more about them
Those who have participated in R&D partnerships in the past are significantly more interested in learning more about them
12

Detailed Findings

Defining and Understanding Innovation

Only about 6 in 10 employers feel that they understand the meaning of innovation very well
By sector, this peaks at 8 in 10 (79%) in High Tech; half or less understand the meaning of innovation very well in Community & Social Services (36%), Health Care (46%) and Hospitality & Culinary Arts (50%).

Understanding of Innovation
(Total)
n=314

Very Well

58%
Somewhat Well

Not at All

37% 5%
15

Q6: The topic of our discussion today is innovation and its role within organizations. To begin, how well do you feel you and your organization understand the meaning of innovation? Would you say you understand innovation

Unaided definitions of innovation frequently included the term new For example, new ideas, things, ways, products or technology

Q7. How would you define innovation? Please be as specific as possible.

16

Although a variety of unaided definitions for innovation emerged, responses tended to revolve around the top 4 definitions below
About half of GTA employers say that innovation is creating new products, services or processes or finding new ways to improve existing services / processes. R&D is not equivalent to innovation. Only 2% of employers mentioned R&D in their definition of innovation. Definitions of Innovation Unaided
(Total)

Innovation is ...

n=314

Creating new services / products / processes Keeping up / staying ahead on the newest tech / ideas New ways / improving existing services / processes Out of the box / creative thinking Progress / consistently moving forward Finding new ways to achieve more with less Staying ahead of the competition Great customer service Taking initiative / chances Research and development Enhancing workforce / increasing diversity Improving the culture Using social media Other Dont know
Q7. How would you define innovation? Please be as specific as possible.

30% 26% 23% 17% 7% 6% 5% 4% 2% 2% 2% 1% 1% 9% 7%

17

Verbatim examples for top 4 definitions...

Definitions of Innovation Unaided

Innovation is ...
Creating new services / products / processes 30% of Total
Creating products or processes that have never been done before.

(Total)

Keeping up / staying ahead on the newest tech / ideas 26% of Total

n=314

New ways / improving existing services / processes 23% of Total

Improving on something that already exists through technology. The ability to adapt and implement new strategies that benefit the community and the business such as partnerships with educational institutions like placement opportunities. Innovation is finding new ways to do new or old things. Ideas, feedback and continuous improvement and increasing safety, efficiency and quality of products, services and processes.

Out of the box / Creative thinking 17% of Total

Going out of the normalcy box.

Keeping up with technology and staying one step ahead of the game; looking ahead and moving forward. Keeping up with new trends and technology and being efficient.

Coming up with new ways of using new technology that meet our clients needs for the future.

Constantly being creative, thinking outside the box and coming to market with new things and ideas.

Creating something new that adds value for us to your clients business and something that hasn't been thought out before.

Innovation is looking to the future and taking the new leads and running with them like technology and social media. Forward thinking. Moving with the times and keep up with trends.

Thinking about moving forward ahead and thinking outside of the box.

New ideas, creating new ideas, keeping up to date, keeping ahead of your competitors with new products and new ideas.

Innovation is all about being creative, and using new and inventive ways.

Q7. How would you define innovation? Please be as specific as possible.

18

In the High Tech sector, innovation is more about creating new services / products / processes and less about improving existing services / processes and out of the box / creative thinking
Like those in the High Tech sector, the Construction sector also tends to view innovation more as creating something new, while those in Health Care are more likely to think that it is keeping up / staying ahead on the newest tech / ideas. Commerce & Communications sector gravitates Definitions of Innovation Unaided more toward innovation as improving (Total) existing services / processes n=314
Health Care
n=50

Innovation is ...
Creating new services / products / processes
Keeping up / staying ahead on the newest tech / ideas New ways / improving existing services / processes Out of the box / creative thinking Progress / consistently moving forward Finding new ways to achieve more with less Staying ahead of the competition Great customer service Taking initiative / chances Research and development Enhancing workforce / increasing diversity Improving the culture Using social media Other Dont know

High Commerce & IT/Eng Construction Tech Comm. H&CA

n=50 n=55 n=40 n=41 n=79

30% 26% 23% 17% 7% 6% 5% 4% 2% 2% 2% 1% 1% 9% 7%

22%
40% 20% 14% 6% 8% 4% 4% 2% 4% 2% 18% 8%

32%
26% 20% 12% 4% 6% 6% 2% 2% 8% 14%

38%
16% 33% 16% 9% 7% 9% 6% 2% 2% 2% 2% 9% 6%

23%
10% 28% 20% 13% 5% 3% 3% 5% 13% 5%

39%
29% 17% 20% 5% 5% 2% 5% 2% 2% 2% 2% 5%

41%
30% 15% 11% 7% 7% 4% 4% 4% 7%
19

Q7. How would you define innovation? Please be as specific as possible.

In larger companies, innovation definitions shift slightly towards more emphasis on customer service and risk-taking
In small companies, somewhat less focus on out of the box / creative thinking. HR Managers have somewhat more focus on creating new services / products / processes Definitions of Innovation Unaided (Total) than Line Managers do. n=314 Position Company Size

Innovation is ...
Creating new services / products / processes Keeping up / staying ahead on the newest tech / ideas New ways / improving existing services / processes Out of the box / creative thinking Progress / consistently moving forward Finding new ways to achieve more with less Staying ahead of the competition Great customer service

Small (4-19)
n=113

Medium (20-99)
n=134

Large (100+)
n=67

Line HR Managers Managers

n=158 n=156

30% 26% 23% 17% 7% 6% 5% 4% 2% 2% 2% 1% 1% 9% 7%

32%
25% 23% 12% 8% 4% 4% 4% 2% 4% 2% 2% 11% 8%

25%
28% 22% 19% 7% 8% 5% 2% 2% 2% 2% 10% 8%

35%
30% 26% 21% 5% 5% 5% 9% 7% 2% 2% 5% 2% 5%

25%
27% 25% 18% 7% 8% 4% 3% 3% 1% 2% 1% 2% 9% 9%

35%
26% 21% 16% 8% 4% 5% 5% 2% 3% 1% 2% 1% 10% 6%
20

Taking initiative / chances

Research and development Enhancing workforce / increasing diversity Improving the culture Using social media Other Dont know

Q7. How would you define innovation? Please be as specific as possible.

On a aided basis, most employers say that innovation is about finding new ways to improve existing services, products or processes and finding creative ways to solve problems
Less than one-fifth of employers (18%) say that innovation is about inventing new services, products or processes.

Statement that Most Defines Innovation - Aided

(Total)
n=314

Innovation is finding new ways to improve existing services, products or processes Innovation is finding creative ways to solve problems

34%

30%

Innovation is inventing new services, products, or processes

18%

Innovation is finding new ways to achieve more with fewer resources

15%

Dont know

3%

Q8: Thinking about innovation, of the following four statements, which one do you most agree with? Please select one answer only.

21

On an aided basis, employers are much less likely to say that innovation is primarily defined as creating / inventing new things
Although creating / inventing new services, products or processes was the top definition of innovation on an unaided basis, it becomes less popular once framed against other options.

Definitions of Innovation Unaided

(Total)
n=314

Statement that Most Defines Innovation Aided

(Total)

Innovation is ...
Finding new ways to improve existing services, products or processes

n=314

Gap Score
(Aided Unaided)

23%

34%

+11

17%

Out of the box / creative thinking / Finding creative ways to solve problems

30%

+13

30%

Creating / inventing new services, products, or processes

18%

-12

6%

Finding new ways to achieve more with fewer resources

15%

+9

26%

Keeping up / Staying ahead on the newest tech / ideas

n/a

n/a

Q8: Thinking about innovation, of the following four statements, which one do you most agree with? Please select one answer only.

22

Productivity is more important to employers than innovation or creativity, which are viewed as equally important
Nearly all GTA employers agree that productivity is very important in their organization About 6 in 10 say the same for innovation and creativity; and almost no employers (1-2%) say innovation or creativity are not important.

Attribute Importance - % Very Important

(Total)
n=314

Productivity

92%

Innovation

62%

Creativity

62%

Q9: How important are each of the following attributes to your organization? Please say whether each one is very important, somewhat important, or not important.

23

Productivity still trumps innovation and creativity, no matter how respondents define innovation
Innovation is valued most by those who consider it to be out of the box / creative thinking.

Attribute Importance - % Very Important

(Total)
n=314

Definition of Innovation Unaided

Creating New
n=94

Keeping Up
n=83

Improving Existing Out of the Box

n=71 n=53

Productivity

92%

94%

93%

93%

93%

Innovation

62%

59%

66%

66%

70%

Creativity

62%

65%

57%

62%

62%

Creating New: Keeping Up:

Innovation is creating new services / products / processes Innovation is keeping up / staying ahead on the newest tech / ideas

Improving Existing:
Out of the Box:

Innovation is improving existing services / processes

Innovation is out of the box / creative thinking
24

Q9: How important are each of the following attributes to your organization? Please say whether each one is very important, somewhat important, or not important.

Innovation is more important than creativity in the High Tech and Construction sectors, but productivity is still the most important of all
Productivity is even more important in the Hospitality & Culinary Arts and IT / Engineering fields.

Attribute Importance - % Very Important

(Total)
n=314

Health Care
n=50

H&CA
n=50

High Commerce & IT/Eng Construction Tech Comm.

n=55 n=40 n=41 n=79

Productivity

92%

88%

96%

93%

98%

93%

92%

Innovation

62%

52%

58%

64%

68%

73%

73%

Creativity

62%

48%

60%

66%

65%

61%

66%

Q9: How important are each of the following attributes to your organization? Please say whether each one is very important, somewhat important, or not important.

25

There is strong agreement that innovation is a tool to gain competitive advantage and that it can improve the economic health of a region
There is relatively less agreement that organizations should invest in innovation in order to drive the economy, or that gains in productivity are the direct result of a culture of innovation.

Innovation Statements
(Total)
n=314

Strongly Agree
Innovation is an effective tool in gaining a competitive advantage over competitors

Somewhat Agree 76%

Disagree 22% 2%

Investing in innovation can help improve the economic health of a region or country

68%

31%

1%

Organizations should invest in innovation in order to drive the economy

53%

43%

4%

Gains in productivity are a direct result of a culture of innovation

41%

55%

4%

Q10: I am going to read you a list of statements about innovation. For each statement, please say whether you strongly agree with it, somewhat agree with it, or disagree with it.

26

Those in Construction and High Tech sectors are the strongest believers in connection between innovation and gains in productivity
Using innovation to gain a competitive advantage over competitors is a top benefit of innovation across all sectors.

Innovation Statements - % Strongly Agree

(Total)
n=314

Health Care
n=50

H&CA
n=50

High Commerce & IT/Eng Construction Tech Comm.

n=55
n=40 n=41 n=79

Innovation is an effective tool in gaining a competitive advantage over competitors

76%

68%

80%

75%

70%

83%

77%

Investing in innovation can help improve the economic health of a region or country
Organizations should invest in innovation in order to drive the economy Gains in productivity are a direct result of a culture of innovation

68%

62%

66%

78%

63%

73%

63%

53%

44%

60%

56%

48%

56%

57%

41%

34%

38%

44%

38%

51%

51%

Q10: I am going to read you a list of statements about innovation. For each statement, please say whether you strongly agree with it, somewhat agree with it, or disagree with it.

27

Employer Interest, Perceived Return and Barriers to Investment in Innovation

When innovation is tied to concrete, measurable outcomes, interest in investing in innovation is very high, especially if it helps make an existing process more efficient or effective

Likelihood of Investing in Innovation Scenarios - % Very Likely

(Total)
n=314

Very Likely

Investment in innovation if it...

Would help make an existing process more efficient or more effective Would reduce the cost of producing an existing product or performing an existing service Would help increase demand for an existing product or service

Somewhat Likely

Top 2 Box

62%

96%

53%

93%

51%

91%

Could improve the economic health of the country

37%

85%

Could increase long-term profitability, but will increase cost and reduce profitability in short term

31%

82%

Q11. Im going to read you a list of potential innovation investment scenarios you may have experienced in your organization. Please say whether you feel your organization would be very likely to invest, somewhat likely to invest, somewhat unlikely to invest, or very unlikely to invest in innovation if it

29

Interest in investment in innovation is highest in High Tech sector

Especially if it makes an existing process more productive or increases demand.

Likelihood of Investing in Innovation Scenarios - % Very Likely Investment in innovation if it...

Very Likely Somewhat Likely Top 2
Box

(Total)
n=314

Health Care
n=50

H&CA
n=50

High Commerce & IT/Eng Construction Tech Comm.

n=55 n=40 n=41 n=79

Would help make an existing process more efficient or more effective Would reduce the cost of producing an existing product or performing an existing service Would help increase demand for an existing product or service Could improve the economic health of the country Could increase long-term profitability, but will increase cost and reduce profitability in short term

62%

96%

62%

58%

64%

65%

56%

72%

53%

93%

52%

50%

53%

50%

59%

60%

51%

91%

30%

50%

58%

53%

66%

61%

37%

85%

32%

38%

46%

35%

32%

37%

31%

82%

24%

32%

31%

33%

29%

33%

Q11. Im going to read you a list of potential innovation investment scenarios you may have experienced in your organization. Please say whether you feel your organization would be very likely to invest, somewhat likely to invest, somewhat unlikely to invest, or very unlikely to invest in innovation if it

30

There is less interest in investing in innovation for productivity or long-term profitability in small companies
No matter their company size, a majority of employers would be very likely to invest in innovation if it helped make an existing process more efficient or more effective.

Likelihood of Investing in Innovation Scenarios - % Very Likely

(Total)

Investment in innovation if it...

Very Likely Somewhat Likely Top 2
Box

Company Size
Small (4-19)
n=113

n=314

Medium (20-99)
n=134

Large (100+)
n=67

Would help make an existing process more efficient or more effective Would reduce the cost of producing an existing product or performing an existing service Would help increase demand for an existing product or service Could improve the economic health of the country Could increase long-term profitability, but will increase cost and reduce profitability in short term

62%

96%

56%

68%

63%

53%

93%

46%

58%

55%

51%

91%

47%

52%

57%

37%

85%

35%

37%

39%

31%

82%

24%

37%

33%

Q11. Im going to read you a list of potential innovation investment scenarios you may have experienced in your organization. Please say whether you feel your organization would be very likely to invest, somewhat likely to invest, somewhat unlikely to invest, or very unlikely to invest in innovation if it

31

Employers see investing in innovation as providing a good return on investment

Developing new technology and innovation training for employees are the two investments in innovation that are viewed as having the highest return.

Perceived Return on Potential Investments - % Significant Return

(Total)
n=314

Significant Return Modest Return

Developing new technology, such as systems and software Innovation skills training / professional development programs for your employees Investing in the development of a new product or service Hiring graduates from an institution who builds innovation as a skill set in its curriculum Fostering R&D partnerships with educational institutions Acquiring a company with an innovative product or service that is in-market or market-ready

49%

83%

48%

93%

40%

89%

36%

93%

31%

84%

31%

78%

Q12. Im going to read you a list of potential investments in innovation. For each potential investment, please indicate whether you feel it will provide a significant tangible return on investment, a modest tangible return on investment, or no tangible return on investment.

32

High Tech is sector that sees most significant ROI in technology and investment in new products / services
Health Care is sector seeing much more significant ROI for employee innovation skills training and development. Hospitality & Culinary Arts sector sees most significant ROI for hiring graduates from institutions building innovation skills into their curriculum. Perceived Return on Potential Investments - % Significant Return
(Total)
n=314

Health Care
n=50 Developing new technology, such as systems and software Innovation skills training / professional development programs for your employees Investing in the development of a new product or service Hiring graduates from an institution who builds innovation as a skill set in its curriculum Fostering R&D partnerships with educational institutions Acquiring a company with an innovative product or service that is in-market or market-ready

H&CA
n=50

High Commerce & IT/Eng Construction Tech Comm.

n=55 n=40 n=41 n=79

49%

42% 66% 28% 30% 34% 20%

54% 40% 40% 50% 30% 34%

49% 53% 38% 36% 35% 38%

48% 40% 43% 28% 30% 20%

54% 37% 51% 22% 20% 29%

58% 41% 51% 33% 28% 37%

33

48%

40%

36%

31%

31%

Q12. Im going to read you a list of potential investments in innovation. For each potential investment, please indicate whether you feel it will provide a significant tangible return on investment, a modest tangible return on investment, or no tangible return on investment.

Small companies are less convinced of the ROI that investing in innovation would provide
Medium sized companies are more likely to see hiring graduates equipped with innovation skills as providing a significant return, while large companies appear more willing to invest in developing new products / services.

Perceived Return on Potential Investments - % Significant Return

(Total)
n=314

Company Size
Small (4-19)
n=113

Medium (20-99)
n=134

Large (100+)
n=67

Developing new technology, such as systems and software Innovation skills training / professional development programs for your employees Investing in the development of a new product or service Hiring graduates from an institution who builds innovation as a skill set in its curriculum Fostering R&D partnerships with educational institutions Acquiring a company with an innovative product or service that is in-market or market-ready

49%

45% 43% 33% 27% 26% 28%

53% 49% 42% 43% 34% 31%

46% 54% 49% 36% 34% 36%

34

48%

40%

36%

31%

31%

Q12. Im going to read you a list of potential investments in innovation. For each potential investment, please indicate whether you feel it will provide a significant tangible return on investment, a modest tangible return on investment, or no tangible return on investment.

Shortage of innovative employees to hire is the largest barrier to employers investing in innovation, along with concerns about long-term ROI

Barriers to Investment in Innovation - % Significant Barrier

(Total)
n=314

Significant Barrier Moderate Barrier

Difficulty finding innovative employees to hire

32%

74%

Concerns that the up-front investment will not pay long-term dividends Belief in management that innovation often does not result in tangible short-term benefits Innovation is not a major focus of our organization Problems concerning proprietary rights and patents

29%

72%

19%

60%

17%

52%

15%

47%

Q13. I will now read you a list of potential reasons that could be barriers to your organization investing in innovation. For each potential reason, please indicate whether you feel it is a significant barrier, a moderate barrier, or not a barrier to your organization investing in innovation.

35

Shortage of innovative employees to hire is #1 biggest barrier for High Tech employers
Also clear #1 barrier for Hospitality & Culinary Arts and IT / Engineering sector. By job function, HR Managers especially focused on innovative employees as #1 barrier, while Line Managers more equally concerned about ROI as well as shortage of innovative new hires. Barriers to Investment in Innovation - % Significant Barrier
(Total)
n=314

Significant Barrier Moderate Barrier

Difficulty finding innovative employees to hire Concerns that the up-front investment will not pay long-term dividends

Health Care
n=50

H&CA
n=50

High Commerce & IT/Eng Construction Tech Comm.

n=55 n=40 n=41 n=79

32%

74%

30%

34%

29%

40%

34%

41%

29%

72%

30%

20%

27%

18%

37%

28%

Belief in management that innovation often does not result in tangible short- 19% term benefits Innovation is not a major focus of our organization 17% Problems concerning proprietary rights and patents 15%

60%

14%

14%

20%

18%

32%

22%

52%

16%

28%

16%

10%

17%

10%

47%

12%

18%

15%

13%

20%

14%

Q13. I will now read you a list of potential reasons that could be barriers to your organization investing in innovation. For each potential reason, please indicate whether you feel it is a significant barrier, a moderate barrier, or not a barrier to your organization investing in innovation.

36

Over half of employers feel that a dependence on old economy industries or a lack of private sector funding are causing Canadas low levels of innovation
Reasons for Canadas poor performance on innovation are consistent by sector. Smaller companies are more likely to feel that Canada doesnt have enough private sector venture capital investment.

Reasons for Canadas Lagging Innovation

(Total)
n=314

We have been too dependent on 'old economy' industries

31%

55%
We don't have enough private sector venture capital investment in R&D

24%

We are more risk averse than our U.S. and global competitors

21%

Graduates from colleges and universities are not sufficiently educated

7%

None of the above

17%

Q33. Research suggests that Canada and the GTA are lagging behind other countries on innovation. In your opinion, which one of the following reasons best describes why the innovation levels of Canada and the GTA have been so low for so long?

37

The majority of GTA employers have introduced a new product and significantly improved an existing product in the past year
This is similar across the sectors.

Last Introduced New Product or Service

(Total)
n=314

Last Made Significant Improvement to Product or Service

(Total)
n=314

3% 5%

9%
Within the last 12 months

3% 7%

9%

13%

1-2 years ago 3-5 years ago

70%

14%

More than 5 years ago Dont know

67%

Q14. When was the last time your organization introduced a new product or service? Q15. When was the last time your organization significantly improved an existing product, service or critical process? Please keep in mind your answers are confidential and we are asking about a significant improvement.

38

About one-third of those that introduced a new product in the past two years solicited investment and received support
However, two-thirds did not solicit investment. Almost all of those that solicited investment from an outside organization received at least some support. Sources of investment are widely dispersed private investment and government investment is about equal. Low levels of current solicitation and support with Colleges. Investment Behaviour
NET: Government Federal Government Provincial Government NET: Private Venture Capital Private Investor NET: Post Secondary Partnered with College Partnered with University None of the above 7% 4% 19% 18% 10% 8% 5% 4% 9% 7% 67% 71%
39

16% 14% 9% 7% 14% 12% 21% 18%

Organizations Solicited for Investment

(Among 83% of Total who introduced a new product or service in the past two years)
n=259

Organizations Received Support From

(Among 83% of Total who introduced a new product or service in the past two years)
n=259

Net: 33% Solicited Investment

29% Received Support

Q16a. When your organization introduced its new product or service, did you solicit any investment or support from any of the following sources? Q16b. And did you receive support from the source(s) you solicited from?

Innovation in the Greater Toronto Area

Less than half (42%) of respondents say that Toronto is more innovative than other major Canadian cities
Three-quarters (76%) say Toronto is at least as innovative as other major Canadian cities. Perceptions of Toronto being more innovative are highest in the Construction sector (54%), and lowest in the Commerce & Communications and IT / Engineering sectors (35%).

Perception of Innovation in Toronto

(Total)
n=314 Compared to other major Canadian cities, Toronto is...

14% 8% 36% 42%

Less innovative Equally innovative More innovative Don't know

Total
n=314

Health Care
n=50

High Commerce & H&CA IT/Eng Construction Tech Comm.

n=50
n=55

n=40

n=41

n=79

More Innovative

42%

38%

50%

35%

35%

54%

47%

Q28. From your experiences, how innovative do you think Toronto is compared to other major Canadian cities?

41

Half of employers believe that government should be taking the lead responsibility for investing in innovation in the GTA
The perception is that it should be the Federal and Provincial governments doing the investing; little is expected from the municipal level. Expectations of PSEs almost as high as for private sector much more so for Universities than Colleges at present. Responsibility for Investing in Innovation in GTA
(Total)
n=314

NET: Government Provincial government Federal government

50% 24% 21% 5% 21% 16% 11% 5% 8%

43

Municipal government
Private sector companies NET: PSEs Universities Colleges Other

Q29. Which one source do you think should have the most responsibility for investing in innovation in Toronto and the GTA?

Those that define innovation as creating new services / products / processes or improving existing services / processes are more likely to believe that the private sector should be responsible for investing in innovation
They are also less likely to believe that this responsibility falls on PSEs. Responsibility for Investing in Innovation in GTA
(Total)
n=314

Definition of Innovation Unaided

Creating New
n=94

Keeping Up
n=83

Improving Existing
n=71

Out of the Box

n=53

NET: Government Provincial government Federal government Municipal government Private sector companies NET: PSEs Universities Colleges Other

50% 24% 21% 5%

50% 22%

49% 23%

49% 24%

46% 21%

18%
10%

25%
1% 13% 19% 11% 8% 10%

24%
1% 32% 9% 9% 0% 6%

17%
8% 26% 13% 9% 4% 6%

21%
16% 11% 5% 8%

29% 11% 9% 2% 6%

Creating New: Keeping Up: Improving Existing: Out of the Box:

Innovation is creating new services / products / processes Innovation is keeping up / staying ahead on the newest tech / ideas Innovation is improving existing services / processes Innovation is out of the box / creative thinking
44

Q29. Which one source do you think should have the most responsibility for investing in innovation in Toronto and the GTA?

Telecommunications, and especially Information Technology, are perceived to be the most innovative sectors
The Information Technology sector is especially seen as most innovative amongst Construction employers (61%). Education sector more likely to see seen as innovative by Hospitality & Culinary Arts (18%) and Community & Social Services (20%). Most Innovative Sector
(Total)
n=314

Information technology Telecommunications Education Manufacturing Food and hospitality Construction and property development Banking and financial services Other

46% 20% 9% 6% 5% 4% 3% 4%

Q30. Of the following sectors, which one do you think is the most innovative?

46

The vast majority agree that multiculturalism has a positive impact on Canadas ability to innovate
Very few (8%) believe that Canadas multiculturalism has a negative impact on innovation, consistent across sector. Belief that multiculturalism has a strong positive impact on innovation in Canada is highest amongst the Hospitality & Culinary Arts sectors, and lowest in the Commerce & sector. Impact of Canadas Multiculturalism on Innovation % Strong Positive Impact
(Total)
n=314

Strong Positive Impact Somewhat Positive Impact

Health Care
n=50

H&CA
n=50

High Commerce & IT/Eng Construction Tech Comm.

n=55 n=40 n=41 n=79

44%

82%

48%

56%

33%

40%

49%

39%

Q32. Canada is considered to be one of the most multicultural countries in the world. What impact do you think immigration has had on Canadas ability to innovate?

47

More than half of respondents could not name a current and successful innovator in the GTA
Consistent with views on the most innovative sectors, top company mentions were largely in the information technology and telecommunications sectors. Number one most mentioned individual organization was Apple (13 mentions). Very few mentions of individuals, and those who are mentioned mostly not based in GTA, e.g., Jim Balsillie (2 mentions) and Frank Stronach (2 mentions).

Top Mentions
Among those companies mentioned by at least 1% of Total

There was one mention of George Brown College.

Current and Successful GTA Innovators

(Total)
n=314

Dont know: 55%

Other: 28%
Q31. If I ask you to name a current and successful innovator in the GTA, who comes to mind?

48

Employee Skills Expectations of Employers

The most important aspect of innovation-related skills is the ability to learn new things quickly
Followed by the application of problem-solving to existing situations.

Importance of Skills for New Graduates

(Total)
n=314

Extremely Important
Able to learn new things quickly

Very Important

Top 2 Box 96% 81% 72%

40%

Innovative in applying problem-solving to existing situations

26%
21% 14% 53%

Finds new ways to get results in the work they do

Makes suggestions for improving products and/or processes

65%

Conceptual understanding of how to be innovative 11%

Previous experience with real-life research and development project

7%

26%

Q17a: With regard to new hires that have just graduated from college or university, how important are each of the following skills and abilities to performing the type of work that most new college or university hires would typically do at your organization?

50

Employers coalesce around ability to learn new things quickly and applying problem-solving skills as the top 2 most important innovation-related skills
Same top 2 most important skills in all sectors. Able to learn new things quickly is #1 most important in all sectors, except top 2 tied in High Tech and Community & Social Services.

Single Most Important Skill for New Graduates

(Total)
n=314

Importance of Skills for New Graduates

(Total)
n=314

Extremely Important
Able to learn new things quickly Innovative in applying problem-solving to existing situations

Very Important

Top 2 Box 96%

49% 26% 9% 8% 3% 5%

40%

26%
21% 14% 11% 7% 53%

81% 72% 65%

Finds new ways to get results in the work they do Makes suggestions for improving products and/or processes Conceptual understanding of how to be innovative Previous experience with real-life research and development project

26%

Q17a: With regard to new hires that have just graduated from college or university, how important are each of the following skills and abilities to performing the type of work that most new college or university hires would typically do at your organization?

51

The most important aspect of creativity-related skills is the ability to think creatively
All 3 of these skills are rated higher in High Tech sector for being extremely important.

Importance of Skills for New Graduates

(Total)
n=314

Extremely Important

Very Important

Top 2 Box

Thinks creatively

15%

65%

Is a source of new ideas

10%

55%

Creates new products and/or processes

6%

25%

Q18a: With regard to new hires that have just graduated from college or university, how important are each of the following skills and abilities to performing the type of work that most new college or university hires would typically do at your organization?

52

Creative thinking clearly stands out as the most important creativity-related skill
Thinking creatively is clear #1 amongst these skills in all sectors, except Health Care where it is tied with source of new ideas.

Single Most Important Skill for New Graduates

(Total)
n=314

Importance of Skills for New Graduates

(Total)
n=314

Extremely Important

Very Important Top 2 Box

62%

Thinks creatively

15%

65%

27%

Is a source of new ideas

10%

55%

12%

Creates new products and/or processes 6%

25%

Q18a: With regard to new hires that have just graduated from college or university, how important are each of the following skills and abilities to performing the type of work that most new college or university hires would typically do at your organization?

53

A strong work ethic, efficiency and high quality work are most important productivity-related traits for new graduates

Importance of Skills for New Graduates

(Total)
n=314

Extremely Important

Very Important

Top 2 Box 98%

Has a strong work ethic

51%

Does high quality work

43%

96%

Performs tasks efficiently

34%

97%

Finds new ways to get more done in less time with less effort

26%

71%

Finds ways to reduce costs

16%

56%

Q19a: With regard to new hires that have just graduated from college or university, how important are each of the following skills and abilities to performing the type of work that most new college or university hires would typically do at your organization?

54

When forced to choose, a strong work ethic trumps all else

Strong work ethic is clear #1 across all sectors.

Single Most Important Skill for New Graduates

(Total)
n=314

Importance of Skills for New Graduates

(Total)
n=314

Extremely Important

Very Important

Top 2 Box 98%

48%

Has a strong work ethic

51%

29%

Does high quality work

43%

96%

12%

Performs tasks efficiently

34%

97%

8%

Finds new ways to get more done in less time with less effort

26%

71%

4%

Finds ways to reduce costs

16%

56%

Q17a: With regard to new hires that have just graduated from college or university, how important are each of the following skills and abilities to performing the type of work that most new college or university hires would typically do at your organization?

55

Overall, the single most important new graduate skill / ability employers want is a strong work ethic; followed by doing high quality work and learning new things quickly

Top Most Important Skill for New Graduates Overall

(Total)
n=314

Has a strong work ethic Able to learn new things quickly Does high quality work Innovative in applying problem-solving skills Thinks creatively Performs tasks efficiently Find new ways to get more done with less time/effort Previous experience with real-life R&D project Finds new ways to get results in the work they do Makes suggestions for improving products/processes Is a source of new ideas Finds ways to reduce costs Conceptual understanding of how to be innovative Creates new products and/or processes 2% 2% 1% 1% 1% 0% 0% 7% 7% 6% 5% 18% 17%

33%

Q20: In each of the last three questions, you identified a skill or ability that was the most important for new college or university graduates to possess for work in your organization. These abilities were [READ ANSWERS FROM Q17b, Q18b, and Q19b]. Of these three skills or abilities, which one would you say is the most important for new college or university graduates to possess for work in your organization?

56

Role of Post-Secondary Institutions in Innovation Training

Large majority of employers see PSEs as having an important role in equipping employees with innovation skills
More than half (56%) want PSEs to focus on providing a conceptual understanding of innovation, leaving it to employers to hone and apply innovation skills. High Tech and Commerce & Communications sectors more likely to believe that PSEs should play a role in equipping graduates with innovation skills, whether that role is sole or shared responsibility.

Responsibility for Equipping Graduates with Innovation Skills

(Total)
n=314

16%

28%

56%

Both PSE & Organization: Post-secondary education institutions should equip graduates with a conceptual understanding of what innovation is all about, but it is up to the organization to hone the innovation skills of employees and provide them with the opportunity to apply those skills
PSE: Post-secondary education institutions should equip graduates with innovation skills that organizations can take advantage of Organization: It is the responsibility of organizations to equip their employees with an understanding of and experience with innovation at the appropriate time in their career
Q21. Thinking about equipping employees with innovation skills, or skills that help firms be innovative, which one of the following statements do you most agree with? Q22. And which type of post-secondary institution is the best place to equip future employees with innovation skills and abilities?

58

More employers see Colleges than Universities as the PSE of choice to equip graduates with innovation skills
Responsibility for Equipping Graduates with Innovation Skills
(Total)
n=314

Best Post-Secondary Institution for Equipping Students with Innovation

(Among those answering)
n=265

16%

28%

84%

Colleges

41%

Universities

32%

56%

Both equally

19%

Both PSE & Organization: Post-secondary education institutions should equip graduates with a conceptual understanding of innovation, organization should hone and apply innovation skills PSE: Post-secondary education institutions should equip graduates with innovation skills Organization: It is the responsibility of organizations to equip their employees with an understanding of and experience with innovation

Dont know

8%

Q21. Thinking about equipping employees with innovation skills, or skills that help firms be innovative, which one of the following statements do you most agree with? Q22. And which type of post-secondary institution is the best place to equip future employees with innovation skills and abilities?

60

Employers who define innovation as inventing new or improving existing services, products or processes, or finding new ways to do more with less are more likely to see Colleges as better than Universities for equipping students with innovation skills
Only those employers who define innovation more in terms of creative ways to solve problems are more likely to favour Universities.

Best Post-Secondary Institution for Equipping Students with Innovation

(Among those answering)
n=265

Definition of Innovation Aided

Improving
n=106

Inventing
n=57

Productivity
n=46

Creativity
n=93

Colleges

41%

41%

32%

39%

26%

Universities

32%

25%

23%

17%

39%

Both equally

19%

12%

23%

9%

19%

Dont know

8%

8%

9%

4%

4%

Improving: Inventing:

Innovation is finding new ways to improve existing services, products or processes Innovation is inventing new services, products or processes

Productivity:
Creativity:

Innovation is finding new ways to achieve more with fewer resources

Innovation is finding creative ways to solve problems
62

Q22. And which type of post-secondary institution is the best place to equip future employees with innovation skills and abilities?

Relatively few employers are aware of partnership opportunities with Colleges and Universities
Only about one-third of GTA employers (30%) are aware of R&D partnerships with post-secondary institutions. Of those who are aware of these types of partnerships, about half (54%) are aware that these partnerships are available with George Brown College specifically. Awareness of R&D / Funding Partnerships with Colleges & Universities
(Total)
n=314

Awareness of R&D / Funding Partnerships with GBC

(Among answering)
n=95

0%
70%

30%

54%

46%

Yes No

Only 16% of the Total sample were aware of the R&D / Partnership funding initiatives that George Brown College offers.

0%
Yes No

Q23. Are you aware of the R&D partnerships and government funding opportunities available through colleges and universities in the GTA? Q24. Are you aware of the R&D partnerships and government funding opportunities available through George Brown College?

63

Levels of past experience with R&D partnerships with PSEs is low, and skews towards Universities
20% of GTA employers have participated in an R&D partnership with an educational organization, with universities generally being the partner of choice over colleges. And few of the non-triers have even considered such partnerships (20 % of non-triers; 16% of Total sample). Ever Consider Partnering for R&D Project
(Among answering)
n=251

Past R&D Partnerships

(Total)
n=314

Yes, with a University

15%

68%
Yes, with a College Yes, with another educational organization No

8%

NET Yes: 20%

20% 12%

2%

77%
Yes

Dont know

3%

Didnt know that type of partnership was an option No

Q25. Have you ever partnered with another educational organization, such as a college or university, on a research or product development project? Q26. Have you ever considered partnering with an educational organization, such as a college or university, on a research or product development project?

64

Although relatively few have experience with R&D partnerships, there is interest in learning more about them
The strongest interest in learning about partnership opportunities is within the Construction sector. Interest in Learning About Partnership Opportunities
(Total)
n=314
Very Interested Somewhat Interested Not Interested

18%

44%

39%

62% Interested
Health Care
n=50

H&CA
n=50

High Commerce & IT/Eng Construction Tech Comm.

n=55 n=40 n=41 n=79

8%

14%

7%

20%

27%

20%

Q27. How interested would you be in learning more about opportunities to partner with an educational organization, such as a college or university, on a research or product development project?

65