What is the future of innovation-driven growth?
It’s a question a lot of us probably wonder subconsciously as technology continues to innovate and new solutions come to the market.
WIPO considers this in its Innovation Index, where it ranks the performance of 132 economies, highlighting their innovation strengths and weaknesses to provide an indication of how nations are using technology to their advantage.
The recent state of innovation
‘The risk of a splintered world economy has grown.’
We may be quickly progressing into 2023, but that doesn’t stop economies from evaluating their innovation capabilities as the Digital Age provides hope of an economic uplift.
2022 saw the lowest results for Productivity growth – ever. Global tension and events have caused uncertainty in growth, resulting in a ripple effect around the world. As a result, financial resources have continued to be stretched and reduced thus having a detrimental impact on productivity. Even though 2021 and 2022 saw a boom in funding for digital solutions, financial policies have been tightened and teams are having to provide justification for spend on innovation. Science and innovation investment is still needed yet continues to slow down.
The report suggests governments and corporations need to take a chance on investment to see a return – but why are they so hesitant to do something that could save their economies so drastically?
How technology innovation can create a digital future
“Digital transformation can be a powerful tool in overcoming productivity stagnation.”
Robson Braga de Andrade, President, Brazilian National Confederation of Industry (CNI)
Productivity is a factor almost all organisations are trying to combat and improve. But there is hope.
The Index suggests there will be 2 novel innovation waves:
- The upcoming Digital Age: built on supercomputing, artificial intelligence and automation
- Deep Science innovation built on breakthroughs in biotechnologies, nanotechnologies, new materials and other sciences
It could be that such innovation will come all at once and change the game for a lot of people. In times of economic uncertainty, recessions and global tensions, it is difficult to identify which technologies will be here to change the game. For sure, technology adoption and digital transformation are set to improve habits and working practices for the better.
Another question is, when will those waves come to shore?
- Technology has the power to boost productivity
- Invest sooner to see a return