Dynamic Innovation:Key to EU-US Economic development

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                                                                                                        Innovations development

                                                                                         

                         DYNAMIC INNOVATIONS DEVELOPMENT                                                                      

               

               Dynamic innovations: key to EU- US Economic development

                                        Aurimas  Kisielius

                                      University of London

                                      Professor Tale Omole

                                     Industrial Management  

 

                                       

                                                                                                     

                                     

                                                         

                                                    Abstract

         Development has been the major policies of most advanced countries; the only difference is the system the policy makers of each country have been able to implement the policies of innovations. The U.S. is one of the countries that have taken policy of R & D as its major policy.  Although most EU countries adopt innovation policies in their programs, most of them still lag behind in the funding of R & D. The European Innovation Scoreboard of 2007 shows the gap between EU and U.S. in the innovation policies.  Although EU has been constant in financing the R & D since 1996, but U.S has gone further in improving the funding of innovations.

       Nevertheless, the scoreboard of 2007 still shows that many western countries have been strengthening research and educational policies by funding universities and research. U.S. continues to have an edge in innovations compared to other EU countries. Both the United States and the European Union have common goals in setting worldwide leadership of science and technology. Although the U. S. may be leading in most input and output indicators, they must have target in their goals to lead the world in Research and development and other Intellectual property. The innovation scoreboard of 2007 has revealed that the EU has taken the lead in few metrics but U. S. is still leading in most qualitative indicators in the fields of research and development.

         Thus, in this new global era, the U.S.-E.U. economic relationship still remains the largest and in the world. Daily, millions of consumers, producers and workers benefit from the mutual relationship of the two blocs. There are indicators that the two blocs have more to benefit by increase funding on innovations and to further increase developments in their countries.

                                         

                                           INTRODUCTION

For innovations to occur, government or organisations must be able to reinforce capacity in bringing up new ideas. The government must create favourable business environment for firms to successfully operate. Moreover, the business organisations must be able to put insight and ideas into practical use in order to develop new products and services. In the present competitive global economy, the government and organisations must adopt innovations in their yearly policies in order to improve the level of economic strength. No companies can survive without continuous flow of innovations. The innovation, which simply means dynamic introduction of new products and services in the system and for a company to produce new products, innovations must be reflected in all its activities. Innovation in another sense is  a process by which public and private organisation create value to their customers by transforming technology and new knowledge into profitable products and services .If there is high level of innovations in the country, there will be growth in GDP and increase in per capita income. Moreover, there will more jobs in the country and level of economic growth will increase which will lead to increase in standard of living.        

For a company increase its market shares, its sales technique, its marketing strategies, its research and development (R & D), its system of production and human resources must all be innovated. For organisation to achieve success in their operations, the whole process of innovation should not only be reflected in the R & D, the senior management should also be a decisive factor in the innovation of the company policies. (Clause,1998)

     In other words, innovation within firms involves high level of certainty and human creativity. For firm to benefit in a large way in innovation process, the managers or the directors of the organisation must be able to master the competitive environment in which they are operating. Moreover, they must be conscious of strategies to improve their products and services. The management must always undergo constant training to improve their skills to come up with new ideas in making sound business decisions. Meanwhile, no company can stand the loss of market share for a long time or make constant price reduction to survive. For a company to have imperative to innovate, the managers must understand the working of technology in the innovation process.  Paul and Welfens state in their book “Globalisation, Economic growth and Innovations “modern computer technology and the rising role of software –relative to hardware –have contributed to the faster diffusion of new technology worldwide. (Paul, Welfens, 1999.P.4)

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The improvement in science and technology and introduction of sophisticated technology to improve the existing products and services has led man to search for knowledge through the knowledge acquisition to invent new or improve the existing products and services.  For example, the use of new electronic publishing   has taken over the use of old laborious mechanically printing machine thus with the power of dynamic innovations, there are high reduction in cost of production while using electronic publishing to publish books.

      Additionally, in 1970’s and 1980’s, computer machine had been viewed by many, to be only operated ...

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