Annual Innovation Report 2004: Don’t Overlook the ‘MEs’

Medium-sized firms, often overlooked in favour of larger firms or start-ups, may be the best model for how Canadian companies can succeed globally. Don’t Overlook the ‘MEs’: Medium-sized Firms Show the Way to Global Success discusses what sets medium-sized firms apart and the importance of building more innovative Canadian companies ahead of larger Canadian companies.

Document Highlights

Over the past two decades, the productivity levels of Canadian industries have been slipping relative to those of American industries. Meanwhile, plugging into complex, global supply chains has become more important. To address this double challenge, Canadian businesses must become more innovative. Countries that demonstrate more innovation are wealthier and experience faster growth than less innovative countries. The 6th Annual Innovation Report discusses why Canada should pay closer attention to medium-sized firms. They are global players, they understand the importance of export markets, they consider the pursuit of market niches a key success factor, and they tend to be innovative. The research suggests that Canada should concentrate on building more innovative firms ahead of larger firms. More innovative firms have improved productivity, higher profits and higher market share—and they grow more quickly. The report also suggests opportunities to help medium-sized firms transform innovation capabilities into strong innovation performance results.