University of the West of Scotland
Issues Surrounding the Role of Innovation in the Economic Growth Process
The modern world economy shows that the scientific and technological knowledge and innovation are key factors for sustainable economic growth. Much of the competitive advantages that the country holds today derives from the use of scientific knowledge and applied technology become the corporate level to develop new products or services through the management of technological innovation, marketing, and organizational. The world globalization highlights the urgent need for business organizations that produce goods and services for domestic or international market recognize the strategic value of innovation and incorporated into its business management as an instrument or tool that is part of your corporate culture. Innovation is an essential element for any organization in order to survive, grow and significantly influence the direction of any industry. Development does not; however, guarantee success, but most be followed up with successive streams of innovation and change, from the incremental to the radical.
The most reliable way to be successful in the industry is to innovate better and longer than the competitor, leading companies develops innovation portfolios that they can use to help sustain growth over the long term. Innovation and change is an essential part of any business activity, but only some people recognize its importance and significance. Companies recognize that key factors such as productivity, competitiveness, and productive marketing and organizational efficiency, depend increasingly implement suitable mechanisms to change from the stage knowledge generation (Science and Technology), or import and assimilation of it to the stage of practical application through the process of innovation. In the recent years, entrepreneurship has become the most successful innovation to increase the economical growth of the country. Entrepreneurship has long been briefly viewed as a foremost vehicle for financial development and it has captivated investigators from a kind of disciplines with very varied analytical approaches. Audretsch & Thurik, in their paper “What’s new about the new economy? Sources of growth in the managed and entrepreneurial economies,” demonstrates the change which is being made in the OECD countries. According to them, the reason for this change is the entrepreneurial economy (Audretsch & Thurik, 2001, 267). The paper is an attempt to articulate and identify the differences between the new emerging entrepreneurial economy and the managed economy. According to this paper, there are a total of 14 trade-offs that confronts these two economies. The major economic benefits of European integration will come not through economies of scale, but rather through economies of diversity (Audretsch & Thurik, 2001, 308). The countries that have adopted the entrepreneurial economy have been successful in making additional growth. In another paper, “Linking entrepreneurship and economic growth,” Wennekers and Thurik looks at the link between the entrepreneurship and the economic growth of a country. The paper concludes that entrepreneurship really matters for the prosperity of a country. In today’s modern world of economics, entrepreneurship plays an essential role in the growth of economy. According to the paper, ICT-revolution and globalization implies the need for a structural change which requires a considerable reallocation of the resources, this increases the demand for entrepreneurship (Wennekers & Thurik, 1999, 140). The Schumpeterian tradition of the analysis which concerns the form, innovation and entrepreneurship is examined in the paper, “Innovation, entrepreneurship and the firm: a post-Schumpeterian approach.” Burton proposes a post- Schumpeterian framework as a remedy for the defects in the Schumpeterian framework. The...