Global Innovation: The Good, the Bad and the Ugly
Which countries strengthen internal innovation and contribute to global innovation?
Which countries are nurturing their innovation but undermining the global one?
What are the driving forces of innovation in different countries?
Innovation takes place at different levels between different countries. While there are countries that rely on individuals to move the creative process, other countries provide the environment and infrastructure needed to foster and support technological development. Either way, one does not reach `innovation` by chance, countries have to emphasize the creation of conditions that are conducive to the development of innovation.
Global innovation is the creation of new values for the world, whether it is new technologies, new business models, new products and services, or new forms of social entrepreneurship.
The impact of a country’s innovation policy on the wider global innovation system can be negative or positive. Some countries try to strengthen their innovation capabilities through positive policies such as investment in R&D, education, or tax incentives for innovation that contribute positively to the global body of new knowledge. Some countries try to compete through a negative “commercial innovation” policy such as trade restrictions so that it will be local only, export subsidies or inadequate protection of foreign intellectual property rights (IP), a behavior that leads to a reduction in global innovation.
If we sort out the policies under three (3) categories: the good the bad and the ugly, then we would say:
➢ The Good: Those who contribute to the state and to the world at the same time. A “good” innovative policy involves increasing investments in basic scientific research and development; effective policy to transfer technology from universities and national laboratories to the private sector to trade them; and openness to high-skilled immigration.
➢ The Bad: Those who failed in contributing to the state or to the world. A “bad” policy, for example, accepts imports that replace domestic industrialization, or restrictions on foreign direct investment (FDI) within the country.
➢ The Ugly: Those who contribute to the state, but this can have a negative impact on other countries and in general. An “ugly” policy involves manipulation of standards and currency, forced IP transfer or restrictions on the product being localized as a condition for access to the market.
Research shows that there is a high correlation between countries’ innovation policy and their internal innovation success levels. That is, if the policy of innovation is good, it also means doing good for the world. If the world is going to maximize global innovation, we will need to develop stronger mechanisms to encourage countries to contribute more and disrupt it less. Therefore, the most important step may be to focus on global innovation, so that global policy makers, economists and experts will address innovation with the same importance as trade in the optimization of global economic growth and prosperity.
Measuring Innovation in the New Era
As a society we care about what we measure, and we devote to what we measure:
What we measure drives policy making and the development of society in a particular direction. Therefore we must measure progress correctly. If companies and governments blindly accept GDP as their measure of progress, they may maximize the wrong indicator for society.
Smart Capitalism = Gross Domestic Product (GDP) + Gross National Happiness (GNH) + Global Innovation Index (GII)
The Global Innovation Index aims to encourage incentives for appropriate policies for governments, nonprofit organizations, and businesses to enable each nation to increase its GII scoring.
The Gross National Happiness Index can be seen as another measure that reflects our new understanding of social progress; and what about an Altruistic National and International Index? What about the Gross National Health Index?
The 10 pillars of Global Innovation Index (GII)
Psychological well-being; health; education; time component; diversity, cultural preservation and resilience; governance; community vitality; diversity, conservation and ecological resilience; standard of living; and friendly AI. The domains represent each of the components of the welfare of the human race, and the term ‘welfare’ refers to the conditions of existence of a “good life” in accordance with the values and principles set by the Global Innovation Index.
The Global Innovation Index will be examined by an international committee of experts. (Detailed in the complete TING.Global guide).