CHANGING FACE OF INNOVATION IN GLOBAL CONTEXT

 

CHANGING FACE OF INNOVATION IN GLOBAL CONTEXT

 


Innovation is a central driver of economic growth and development and generator of better jobs. It enables firms to compete in the global marketplace and to find solutions to technological and economic challenges. (Vincent,S.W-2012)

It is hardly necessary to point out today how much things have changed. In advanced economies, mainly due to the increasing mobility of capital and globalization, the nature of competitive advantage for regions has shifted away from being based on endowments of natural resources towards focusing on the knowledge resources of a location (Schuller, T. & Desjardins, R. -2007)

This focus on knowledge resources has been accompanied by a corresponding focus on more innovative service sectors in the economy as knowledge-intensive business services. By providing and transferring knowledge and skills to clients organizations are seen as ‘bridges of innovation’, acting as consultants and facilitators of business to business interaction through providing services that are typically tailored to the needs of customer. Thus, organizations are seen as both enablers of innovation among other firms and innovative firms in own right.

According to the Ramakrishna and Joo (2012), Asia has become a powerhouse in science and innovation. Asian nations are not just producing superb innovative products, they are conducting frontier research and producing far more engineers and highly trained technical worker. The GDPs of these nations are expanding at a record pace, and their research and development expenditures, and hence their R&D/GDP ratios are growing even faster. They creating technologies including renewable energy generations, automobiles, and innovative products. As scientific capabilities growing in Asian countries, new opportunities for corporation have been rise. It is shown in the figure 1.

        


Figure 1:Global R & D Spending continues to rise in 2009 (Ramakrishna and Joo -2012)

 

Considering the face of the Chinese competitor has visibly changed in the past five years due to a variety of factors. Years of foreign investments have allowed China to develop into a manufacturing powerhouse rich in technological learning opportunities for local companies. Leaders among these companies have moved up the capabilities ladder from producers to creators. (Prudhomme,D and Zedtwitz,M. -2018). Asian companies are more innovative than other region companies.

 

Sri Lankan companies have more patents for various fields for avoid difficulties. Like other Asian countries, Sri Lankan government is helping to manufacture these patenting trends. A massive system of patent-related subsidies, financial awards, and tax breaks, some with relatively limited qualification requirements, has been rolled out to help meet targets. A new type of patent race ability to develop and use a technology for manufacture new products.

 

Real World examples

 

Illukkumbura Industrial Automation is an electrical company to provide total solution in electrical engineering, fire detection & Protection Systems based on internationally acceptable standards of excellence. They mainly focus on garment industry electrical installation works. Garment industry is a heavily changing and moderating industry and they change their modules and lighting according to the production system implement, efficiency, minimize shipment lead time. Considering the Improvements in working conditions and work organization can result in increased productivity and competitiveness for higher efficiency they change lighting always. As an electrical service provider, R & D department of Illukkumbura Industrial Automation developed two technologies for easy for these changes. One is a power pole. It can be move and easily change according to the re-arrangement. Other one is lighting structure and cluster lamp fitting. Because of this easily re-arrange the module for customer.

 

Non-technological innovation – including organizational, marketing, design and logistical innovation – is also an important enhancer of productivity. Simultaneously squeezed by rising competition from more innovative products, eye these organizations to the fast-changing innovation capabilities and increasingly strategic use of competitors. Better communication, for example through structural changes in the organization of R&D can help improve a company’s dynamism. Whichever innovation mode of operation a company chooses, it should follow the strategies mentioned elsewhere in this article to capture returns on its Sri Lanka investments.

Real world example

At the present situation in Sri Lanka, importing of vehicles is prohibited as government regulations. But Sri Lankan automotive company named ‘Ideal Motors’ setup new factory and assembling motor car brand Mahindra “KUV-100” to cater the local market with country of manufacture as Sri Lanka. This is a transfer of more advanced technology.  They should engage in these operations only if they are confident that their global operations can quickly and effectively respond to the strong competitors they may help create. To avoid possible reduction from a automotive market, these launches were undertaken by special-purpose branded startups.


Companies have better placed to tap into research and innovations happening outside their companies. So that they can serve their markets and customers with more innovative products and compete effectively.

 


References

 

Ramakrishna,S and Joo, D. (2012) The Changing Face of Innovation :Is it Shifting to Asia? Singapore: World Scientific Publishing Company.

 

Prudhomme,D and Zedtwitz,M. (2018) The Changing Face of Innovation in China [Online]

Available at :

https://sloanreview.mit.edu/article/the-changing-face-of-innovation-in-china/

[Accessed on 2022.04.20]

 

Ardalan,K. (2017) Understanding Globalization : Multi dimensional approach. USA: Routledge

 

Schaeffer, R. K. (2009) Understanding Globalization: The Social Consequences of Political, Economic, and Environmental Change (4th ed.). Lanham, Md.: Rowman & Littlefield Publishers.

 

Schuller, T. & Desjardins, R. (2007) Understanding the Social Outcomes of Learning. Paris: OECD.

Vincent, S.W. (2012) The Changing Face of Innovation. WIPO magazine China [Online]

Available at : https://www.wipo.int/wipo_magazine/en/2012/01/article_0006.html

[Accessed on 2022.04.19]

 

Beerepoot.N, Lambregts,M and Kleibert.J. (2017) Globalisation and Services-driven Economic Growth Perspectives from the Global North and South. Oxon : Routledge

 

World Bank, & International Finance Corporation. (2008). Doing Business 2009 : Comparing Regulation in 181 Economies. Washington, D.C.: World Bank Publications.

 

 

 

 

 

Comments

  1. sampathJApril 24, 2022 at 4:58 AM

    Innovation is a central driver of economic growth and development and generator of better jobs. It enables firms to compete in the global marketplace and to find solutions to technological and economic challenges. in high-income countries, innovation the act of creating new products or processes accounts for as much as 80 percent of economy-wide growth in productivity. At the firm level, those that innovate outperform their non-innovating peers and drive economic growth (Vincent, 2012). The pace of technological change is accelerating, uncertainty remains unabated, and advances in organizational innovation continue to raise expectations among consumers, investors, and societies at large. The challenge of simultaneously meeting your budget and innovating is a sticking point for many corporate managers. Overcoming the tyranny of the budget is one of the riskiest aspects of innovation.

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