This article examines the Royal Shakespeare Company’s (RSC) recent focus on digital ‘innovation’ by analysing the relationship between their emerging digital-focused business practices and digital performance practice for The Tempest (2016). To assess this relationship, I first review the socioeconomic context of 21st century neoliberal UK economic policy that encourages arts organisations such as the RSC to participate in innovative digital production practices. I follow with a definition and deconstruction of ‘innovation’ as a key term in UK economic policy. I then demonstrate how the RSC has strategically become involved in innovation practices throughout the 2010s. I will then analyse the digital, motion-capture performance practices the RSC developed in partnership with Intel and motion-capture studio The Imaginarium for The Tempest. In doing so, I will demonstrate that The Tempest serves to legitimise the RSC’s status as a competitor and collaborator in the wider digital economy.