19-09-2013, 04:58 PM
innovative capacity
innovative capacity.docx (Size: 17.55 KB / Downloads: 19)
INTRODUCTION
Invention here refers to ideas that are patented. When those ideas are used for some economic or social purpose they become innovations. Innovations are also often the source of new ideas. Innovations are the source of new technologies. Typically, as the level of invention increases, more innovations and new technologies can be expected. Measuring the level of invention therefore provides an important indicator of the capacity or potential for innovation and the introduction of new technologies.
Measuring innovative capacity over time can provide important insights on the dynamics of invention in any economic activity, nation or geographical area. Such insights may be used by policy-makers, industry analysts or academic researchers for understanding changes in invention, technology and the competitiveness of economic activities.
The role of innovative capacity
To sustain a process of regional inversion, a region must develop a strong base of innovative capacity.
A region’s innovative capacity is directly related to its technological creativity. Technological creativity is the source of invention, innovation and, eventually, of new technologies. A high level of innovative capacity is vital if a region is to become a significant source of new technologies.
Gone are the days when lower labor costs and a raw material endowment provided the key to long-term development. In today’s world, cost and raw material advantages can disappear quickly, as globalization makes alternatives available. Also, basing a region’s advancement on its lower costs is of very limited benefit, since growth and trade usually raise costs substantially, thereby eliminating those advantages.
In an era when intangibles are the most valuable resource, material resources become less important. The most valuable resources of our time are creativity and knowledge. Nurturing and developing those intangibles are fundamental if a region is to achieve a higher level of innovative capacity.
How does innovative capacity help our understanding of regional inversion?
The concept of innovative capacity can provide important insights on the process of regional inversion. Innovative capacity can be used to understand invention and the potential for innovation. Since a region’s national and international projection may depend much on the link between innovative capacity and the development of new technologies, understanding the dynamics of invention and innovation can provide insights on the prospects for regional inversion.
Second, innovative capacity can serve as a diagnostic tool to gauge changes in a region’s level of invention and innovative potential. As the process of regional inversion advances, it is important to have benchmarks on invention and innovation. Measuring innovative capacity on a continuous basis over time can provide a comparative indicator of how regions, their sectors and industries fare as sources of new technology.