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Monday, January 28, 2019

Innovation is What Improves Wealth in the World

Innovation is king in today's market. Countries that are innovative create new products and services others want. Much of American wealth was based on innovation and the ability to be "at the right place at the right time". The entrepreneurial spirit in the U.S. should be rejuvenated to ensure that the nation continues to maintain its economic status.

A study of economic development in Turkey found there is a positive impact between R&D expenditures and R&D workers and economic growth (Bayarcelik & Tasel, 2012). As R&D departments, expenditures and other indicators of innovation such as patents rose so did the GDP.

Why is this important?

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It indicates that countries should focus more on creating innovation. At the end of the day we as a nation need to have enough jobs to support our workers and economy. That won't happen unless our products are cutting edge and able to compete against the market.

Industries that don't stay on top of the market eventually fail. At first it may not look like failure, but as time goes on they lose more resource, have less investments, and need to cost cut. Eventually, there are lay offs. With enough businesses not competing there may be economic decline in the area.

Economic decline is partly a choice. It is how we handle the market, how we build our schools, the values we hold, and the investments we attract. While the factors are numerous economic decline is based on the amount of profit driven transactions as reflective of choice. It is hard to encourage choice when other options are better.

Bayarcelic, E. & Tasel, F. (2012). Research and development: source of economic growth. Procedia-Social and Behavior Sciences, 58.

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