(May 30 – 17:00 ET ) – Statistics Canada released its tri-annual Innovation Analysis Bulletin today, indicating that financial firms may have the money to innovate, but they doubt their ability to do it properly.
This latest study looks at the possible barriers to innovation in various industries. Respondents were asked to rank various obstacles to innovation from insignificant to crucial. Within the service industry, compared with technical and communications services, the financial sector claimed to fear possible barriers the least, just 22% found them significant.
However the type of risks felt most acutely by the financial firms relate to execution, rather than cost or regulatory impediments that afflict the other industries. “The financial services sector is cautious about new technological developments due to feasibility risks and market outlets.”
The most significant obstacles to innovation for financial firms were cited as: feasibility risk, the risk of unsuccessful marketing, and the fact that innovation is easily copied by other firms.
-James Langton