Measuring Innovation in the 21st Century Economy
Posted: 24 Oct 2011
Date Written: September 16, 2011
Dramatic moments in the history of industrial change have always been characterised by the successful exploitation of new ideas and the achievements of innovators. Innovation has driven economic progress, from the invention of the spinning jenny that transformed the textile industry during the 18th century, to the harnessing of electricity and the development of mass production. More recently, semi-conductors, the internet and mobile technology have revolutionised business performance and the economic potential of nations.
It has been long understood that the generation, exploitation and diffusion of knowledge are fundamental to economic growth, development and the well being of nations. Central to this is the need for better measures of innovation. Innovation also affects the competitive advantage of the countries. Over time the nature and landscape of innovation have changed, and so has the need for indicators to capture those changes and provide policy makers with appropriate tools of analysis.
Innovation propels economic growth. Yet the measurement of innovation, in the countries remains rudimentary. To understand better the dynamics of economic growth and, hopefully, avoid harmful policies and enact facilitative policies, we must design improved measures of innovation.
Some of the aspects that will be discussed are the: Innovation and knowledge economy, Innovation policies across government, cross-country analyses of innovation.
Keywords: innovation, innovation policy, competetive advantage
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