The Importance Of Global Innovation

927 Words4 Pages
Innovation is not a new concept. It is as old as humanity itself. There is something naturally “human” about the propensity to think about new and better methods of doing things and try them out in practice. Without it, the world in which we live would look altogether different. The ability to innovate and to offer innovation effectively to the market will be a critical determinant of the global competitiveness of countries over the coming decades. Today, innovation performance is a vital determinant of competitiveness and national advance. Additionally, innovation is imperative to address worldwide challenges, for example, climate change and sustainable development. But in spite of the significance of innovation, numerous countries confront…show more content…
In the course of recent decades, a lot of work has been done to standardize the international definition of innovation. This work culminated in the first version of the Oslo Manual in 1992, subsequently upgraded by the Organization for Economic Corporation and Development (OECD) and Eurostat, the European statistics office, in 1997and 2005. Regardless of these efforts, measuring innovation remains a challenge and variations in the methodological procedures embraced by nations, even when the guidelines of the Oslo Manual are followed hinders the production of completely harmonized…show more content…
Non-innovating firms are eventually compelled to emulate the innovation or face bankruptcy. As the innovation is adopted by more imitators, yield grows and the innovators initial profits are bid away as the price falls to a competitive level. On account of a major innovation, for example, electricity or the automobile, the original new productive activity induces the development of many others, by creating new demands and altering the cost of producers in other sector of the economy. In this way, it offers ascend to vital auxiliary changes in the economy, and in addition to growth in the total volume of output. Since Schumpeter initially formulated in 1942 this model, it has remained the premise for most writing on the role of innovation in the economic

More about The Importance Of Global Innovation

Open Document