Seems like you'd need to put the PHP variable inside a PHP tag:
Recurly.buildSubscriptionForm({
target: '#recurly-subscribe',
planCode: 'innovator',
successURL: 'success.php',
signature: '<?php print $signature ?>',
distinguishContactFromBillingInfo: false,
collectCompany: false,
collectContact: true,
termsOfServiceURL: 'http://supportpay.com/contact/terms-of-use/',
acceptPaypal: false,
acceptedCards: ['mastercard',
'discover',
'american_express',
'visa'],
});