There are considerable innovations coming out of that country - the fact that it's not a hotbed for internet startups seems hardly relevant in the big picture. Businesses are being created by immigrants, who are creating wealth and employment in their respective communities. The fact that this in general has nothing to do with dotcoms is really a detail. Canada continues to be extremely competitive in traditional engineering disciplines, and is world-leading in many fields of science, not least of which is molecular engineering. The University of Toronto, after all, still holds the patent on insulin.
Next time you see a video of the International Space Station, with its bleeding-edge, unprecedented robotic arm, see if you can zoom and see which nation's flag is on it. Or dig into the US's collection of scientific and communications satellites and see how much of their R&D actually occurs in Canada.
I hope people on HN realize that the word "innovation" applies to all manners of fields. So often I feel like this community has blinders on, and very narrowly define "innovation" as "things that occur in my field".