According to Klaus Schwab, the traditional distinction between countries being “developed” or “developing” is losing relevance. “We will instead differentiate among ‘innovation-rich’ and ‘innovation-poor’ countries,” he said.
Innovation is what drives long-term sustainable growth once all other inputs – such as labour and capital – have reached their maximum potential. Around 85% of productivity gains are related to R&D and other innovation-related investments, and productivity gains determine the long-term growth potential of an economy. Yet in many places, innovation and a broader culture of entrepreneurship remain elusive. These countries risk finding themselves unable to achieve sustained levels of prosperity. Creating an ecosystem that fosters innovation and entrepreneurship requires collaborative efforts from all stakeholders. Business, government and academia all have their critical roles to play.
Some regions, countries and cities lack the environment needed to encourage innovation. This might be because of inadequate public policies or poor company strategies. The Global Agenda Council on the Economics of Innovation will put in place clear and realistic plans that will allow these regions, countries and cities to boost their innovative capacities.
Council Manager: Yao Chen, Community Lead, Professional Services Industry, Global Leadership Fellow, firstname.lastname@example.org
Forum Lead: Jennifer Blanke, Chief Economist, Economics Pillar, Member of the Executive Committee, email@example.com