The iron ore mining industry is currently going through an adjustment from high to more moderate growth as China's economy transitions from capital-intensive investment to a more services-oriented economy. We are now witnessing a renewed focus on productivity improvements and cost savings as planned expansions are completed. Despite the scale and importance that the mining industry plays in the global economy, innovation literature is generally more targeted at faster-moving industries with shorter innovation timeframes and lower capital requirements. To fill this gap, VCI set out to understand the state of innovation in the mining industry in 2014. This State of Play report aims to give an objective appraisal of the strengths and weaknesses of innovation in mining. The report has three sections covering both the structure and delivery of innovation in mining:Ecosystem - focused on understanding how the iron ore mining innovation ecosystem system works, including the roles of large and small miners, service companies, researchers and governments. Our recommendations focus on what is required for the system to work well and improve the level and quality of innovation in the industry.Strategy - how do companies define their innovation strategy in relation to their corporate strategy? How are these related to prevailing global and industry trends? How do they communicate this with their business? How successful are they? These are among the questions that this section attempts to answer. Our recommendations are pitched at the executive leadership of iron ore mining and service companies.Delivery - focused on how companies develop and deliver innovation, looking at the success of different structural options, leadership and culture, partnerships and the best approaches to change. Recommendations are aimed at improving outcomes within the iron ore mining value chain, including the role that suppliers play.CITATION:Stanway, G, Mahoney, P, Andrew, D and Griebel, C, 2015. Understanding the state of innovation in the iron ore industry, in Proceedings Iron Ore 2015, pp 631-646 (The Australasian Institute of Mining and Metallurgy: Melbourne).