Innovation And Economic Development

Don Sheelen has stated that “"Innovation is the lifeblood of any

organization without it, not only is there no growth, but, inevitably, a slow
death."
Innovation means introduction of new kind of product, method in any type of
organization may it be an educational institution, hospitality or any kind of
business

Why is innovation necessary….

It is due to effective innovations that many companies have been successful
and are making huge profits and were possible to become global leaders. It
was the innovations that differentiated them from others and made them to
succeed in this globalizing environment .Today thinking differently and
creatively has become a part of all the organizations and the companies are
implementing these creative ideas to develop a new product. We can learn
from the IBM that how their innovative way of marketing made them the global
players in the industry within a short span of time. This is not the only
example there are number of others in almost all fields may it be arts science
or commerce or any other field. The important thing in innovation is the
effective implementation of the creative ideas and testing them for feasibility
otherwise
The creative ideas would have been just faded away with time.

Objectives of innovation
1.To increase the efficiency of the work by inventing new ways of carrying it
2.To improve the quality of the product
3.To provide the most advanced goods to the consumers
4.To compete with the rivals
5.To have a unique line of products
6.To improve the quality of the products

Economic Development
Economic Development means overall development of the country that is
development in all the fields like literacy rate, gdp, life expectancy, poverty
rate, business, commerce, health etc. However all the definitions lead to the
welfare of the human beings and it is the ultimate goal of the economy.
All the policies, theories of economy ultimately approach the welfare of human
beings.

Objectives of Economic Development

1.Increasing the standard of living
2.Increasing the literacy rate
3.Lessining the gap of income
4.Eradicating the poverty
5.Decreasing the inequality between the population
6.Reducing the unemployment
7.Increasing the per capita income of the nation
8.Providing a good infrastructure to the nation

Economy And Innovation

Economic development and innovations are very closely related. Innovations
lead to the success of the industries which leads to huge profits and turnover
and dividend to share holders and it leads to sufficient tax to the government
which in turn is expended for the economic development of the nation and
welfare of the industries. It is due to the innovations of the industries that has
lead to the better products to the society and nation and without innovations
the economic development would be very very slow or even may become
stagnant in this fast developing world and we would be made to borrow the
products necessary for the development of the nation and also it leads to the
increase in the balance of payments of the country which is a great burden for
developing economies. Without innovations there would be no new products
or industries emerging in the economy and the development of the industries
would. If the industries do not stress on R&D then their products will soon
become outdated and their market will be taken over by other firms. In today’s
globalization if government did not stress on R&D then the industries of the
nation will slow down and their market will be acquired by the foreign firms
and may lead to the monopoly of the foreign firms in the nation.
 Why Innovation(R&D) for Economic Development….
1.It leads to the better products to the society and nation.
2.It increases the income of the people by giving employment, increasing the
income of the share holders.
3.It leads to rise in profits of the firm and tax to the government
4.It leads to the development of the defence of the nation which will fill
confidence in the industries as the economy of the country will be safe
guarded.
5.It prevents foreign firms from entering our nation for business.
6.It reduces our dependency on foreign firms if we stress on R&D.
7.It reduces the brain drain of the nation.
8.It strengths the economy.
9.It leads to the growth of ancillary industries.
10.Helps in rural development.
11.Increases the national and per capita income.
12.We can compete globally.

References: Economic Environment Of Business by Misra & Puri

Elviser.com

Books.google.com