Canada's most populous province may be slacking in innovation, according to a report studying workplace innovation by the Task Force on Competitiveness, Productivity and Economic Progress.

The survey compared Ontario to 14 states in the U.S. with similar populations of more than 6 million people, and found that the province falls behind in machinery, equipment and software innovation. The business sector was also found to lag behind the U.S. in research and development.

"Ontarians are among the leaders in developed economies in work effort, hours worked per person, but we are laggards in creating economic value per hour worked," said Roger Martin, chairman of the task force. "This comes from a poor innovation record. For a variety of reasons, we are not leading the world in creating innovative products, services and processes in our businesses and workplaces."

Ontario is still ahead of neighboring Quebec, but the report highlights the need for innovation-based ventures to invest in intellectual property strategies and software. Although the U.S. remains a leader in energy and tech innovations, nations such as China, Germany, Japan and Canada are beginning to emerge as viable world competitors.