Innovation has many benefits for businesses, governments, and not-for-profit entities. But measuring innovation at the firm level is challenging, so past evaluation methods have focused on economy-level trends.

This impact paper introduces a new Capability-Centred Innovation Framework to help measure the innovation performance of individual businesses, based on whether or not they are deemed “high-growth.” The framework includes business capabilities (resources, management, workforce and HR, and technology) and external factors (location, market environment, policy environment).

The framework is based on a survey of 115 businesses from across Canada, interviews with innovation researchers and practitioners, and a review of the literature.

Researchers hope firms will use the framework to adjust their business practices and thereby improve their innovation performance. Funders and policy-makers may also find it useful to inform their funding decisions.