This study explores the dynamic interplay between internationalisation and innovation in SMEs, focusing on how different internationalisation pathways affect innovation. Using a dataset of Canadian SMEs, we employ cluster analysis to categorise firms based on their internationalisation pathways—defined by their scale, scope, timing, and pace—and regression analysis to examine the impact on innovation performance. Our findings show that scale-focused and scope-focused internationalisation significantly enhances innovation compared to domestic-only firms. By identifying five distinct pathways, this study provides a more nuanced understanding of how internationalisation drives SME innovation. It highlights the multifaceted nature of internationalisation’s role in fostering innovation by moving beyond simple measures or types of internationalisation and using multiple measures of innovation. These insights have valuable implications for SME owners, managers, and policymakers aiming to support SME growth through global expansion.