Significance of Innovation and Change in Business Enterprises - Essay Example

?Innovation and Change By: Location . Table of contents Introduction ………………………………………………………….. 3 Significance of Innovation and Change in Business Enterprises………………3 Managing Innovation in Changing Environments to Sustain Business Development……..6 National and Global Barriers to Innovations and Change…………………………………14 Conclusion …………………………………………………………………….15 References ……………………………………………………………………17 Critically Evaluate The Claim That Governments Have A Crucial Role To Play In Promoting Innovation. Introduction The government has done a lot in promoting innovation. This has been occasioned by the competitive edge in science and technology (Leyden & Link, 1992, p. 4). Many governments are not willing to be left behind, therefore, are inventing numerous strategies that would reverse the trend of competitive edge in science to their favor. Governments have therefore, successfully tackled this problem by issuing out adequate funds for various projects being undertaken within the country. An example of these projects includes promoting the number of those doctoral students pursuing different certificates in different countries (Organization for Economic Co-Operation and Development. 2006, p. 101). This encourages the number of students who are graduating from various institutions; therefore, the governments are assured of their investments in a brighter economic future because of the available skills within the country. In addition, the government has also invested heavily in funding for innovative ideas which in-turn lead to proven theories and applications within countries. These ideas are always central towards various fields like technology and also solving major global problems like health issues across the globe (Von Stamm & Trifilova, 2009, p. 125). Significance of Innovation and Change in Business Enterprises In their attempts to promote innovation and change, most governments are fostering private sector expansion because of the growing markets complexities. Industrial growth in countries is stirred by the innovations started by private sector industrial developments and this is significant in the expansion of industrial development within countries. Most developed worlds have promoted industrial development by increasing the funds directed towards these sectors to help in strengthening them to effectively contribute in economic development. However, in privatized industries, government takes caution for innovation not to cloud the interest of their consumers and nations y introducing various policies which protect these parties from inefficiencies caused by greedy monopolies that are out to maximize on their profit proceeds (Great Britain. 2011, p. 42). This technique has proved viable in countries like Angola, Rwanda, and Colombia that are still struggling to develop their infrastructures. Various governments have also promoted innovations in their countries by developing entrepreneurial capability. This has been common amongst developing nations who are desperate in securing their economic growth. Due to international standards, governments are encouraging different forms of innovations and change into their fields like technology, manufacturing amongst other services and production procedures. They have supported strong institutional base departments and programs, which encourages the various productions processes present in industries to emphasize on the need for adoption of innovations within their countries. This has also proved to be effective in the management of change and innovation because of its continuity in adopting and diversifying resources. The government also promotes innovations and change through the various measures they take to enhance global trade. Innovation is a key necessity for many industries wishing to participate in global trade. Therefore, most industries in developing countries are forced to incorporate various innovative ways to favorably compete in global or international trade. Governments have taken it their primary concern to promote international trade within their countries through various measures like increasing liberalization of imported products and services and developing export capabilities in their countries to allow their industries and citizens to incorporate strategies used by other countries in the manufacturing and exportation of their goods and services. This has forced many companies to adopt innovative practices in their manufacture of different products and also in improving their skills and knowledge in different fields. In attempts by governments to protect their economy, they focus on technological transfer and in the process promotes innovation. This is because innovations are the key ingredients in promoting and productivity and exports of a country. Trade is vital aspect for economies of countries and promoting developments of productivity and exports of a country means opening opportunities for the development of a country through the benefits accrued from various trade activities like revenue. Institutions set-up by the government promotes the development of innovation because they act as centers where research and technology are performed and this is vital in promoting trade between countries as it makes it easier for business to in a more accessible and digestible environment. Good business environment promotes the existence of trade between different countries because of the stable innovation policy and benefits created by the existence of innovation and the state of art technology. Hence, it is one of the ways towards establishing a sustainable business development. In addition to the centers of innovation programs solving economic crisis within regions, they also promotes governments and countries into attaining the status of a world innovation leader and most government are always not willing to be left out in the race of emerging as the world’s most top innovators. In their attempts to emerge as the world’s top innovators, governments have laid emphasis on high-value manufacturing. Manufacturing has a key economic importance because it significantly contributes to the GDP of a country. Laying focus on manufacturing provides most balance with the advantage of rebalancing the economy since high-value manufacturing provides them with a new stimulus. Governments are pumping in funds to traditional manufacturing areas to develop the manufacturing process by finding innovative solutions that will stir change in the products and services produced by these companies through the discovery of high value manufacturing. The funds and support allocated to these traditional industries are majorly used for research purposes and development of the state of art equipments that are essential in promoting innovation between countries. Governments stand immense benefit from their plan of promoting traditional industries because it will assist them in bridging the gap between development and commercialization in different sectors of the economy. In addition, the high value manufacturing will tremendously increase the number of industries, which will be resourceful in promoting innovation. Competition between these high manufacturing industries will create the need for development of innovative ideas, which will move the process of innovation closer to the market and make it part of the innovation process within given countries. Similarly, governments’ stands to enjoy the fruits of their long-term investments in high-value manufacturing since it will yield them a substantial return different from that which they had initially invested. Every government aspires this long-term opportunity to its citizens which is an effective move. Managing Innovation in Changing Environments to Sustain Business Development Governments have also played significant roles in promoting innovation to assist in industrial developments within various countries. This is evident from the developing countries where the governments are promoting research to help in tackling globalization trends, which has dismantled barriers between nations. This has enabled them to grow independent from developed countries and natural resources, which are, depleted (Centre for Educational Research and Innovation, 2010, p. 110). Governments’ involvement in these countries have made human capital a significant resource and citizens are focusing on acquiring various skills to explore untapped resources and make appropriate use of the existing ones without requesting help from developed countries or international organizations. The innovations promoted by the governments have also caused the developing countries to accelerate their economic growth to create employment opportunities for citizens living within these countries. This has further been motivated by the competitiveness caused by the global trends in innovation. In addition, governments of third world have been driven by the global boom over the years to adopt innovation into their counties to improve on their industrial development that would increase employment opportunities and produce positive economic result to enable the country to compete favorably with other developing and developed countries (Hassell, et al., 2003, p. 17). The above factors are very critical in understanding the importance of innovation and change towards driving business enterprise and driving the social change. Governments also play significant role in promoting innovation by introducing and promoting effective industrial policy-making (Lewis, 2008, p. 3). They have focused on industrial policies as the policies form a key aspect in economic performance within a country. Realization of good policies promote desired economic environment for the industrial development of a country, therefore, most governments invest in industrial policy making as a way of improving the status of their economies. However, the existence of governments in the drawing of industrial policies also pose a major risk for most existing and would be companies because some of the policies always turn out to be unproductive and ineffective within industries (Mani, 2002, p. 1). This may affect the measures outlined by various governments in promoting innovation and change. Despite the failure of policies to work, their careful execution may be appropriate in managing change. Numerous individuals and industries are emerging up with innovations stolen from other individuals or industries. To promote innovation amongst individuals, industries and the country, governments are formulating policies that will serve to punish these identity thieves for their crimes in stealing and innovations and ideas from other individuals. Despite the task being an enormous, governments have introduced new policies like creating prison terms and high fines for individuals and industries found using their innovations of others without consent. This has seen an increase in the innovations in different countries because innovators are assured of protection of their products and ideas. Similarly, it acts as a way of managing innovation because innovators gets protection which boost their morale Governments are also driven to promote and manage innovation and change in various countries because of the value creation in the current goods and products produced by most manufacturers. Innovation has cultivated a culture that incorporates change as a motivating force leading to the development of new products and services. This has propelled most countries especially the developing ones to adopt innovation culture in order for them to remain viable in the highly competitive economic market and global economy (Federal Facilities Council., 1996, p. 18). Innovation is a tool that can be used in stirring investments within countries by different foreign agencies. Therefore, governments do encourage direct foreign investments within their countries to complete the gap that might exist in the entrepreneurial field. This has been in form of regulations that controls the types and nature of investments within these countries. An example is that governments have simplified investments laws to attract foreign investors into investing in their countries. This is caused by intense competition between governments globally to market their countries as the major destination for investments globally. Formulating investments policies that are simple tremendously assist governments in leveraging external and internal economic advantages that are present within countries and the global market (Organization for Economic Co-Operation and Development, 2010, p. 93). In promoting innovation boosters, governments strategically play their role in promoting innovation. This involves a series of programs taken by most government agencies to improve on small and average enterprises to boosts various fields like life sciences and communication. These fields cannot function properly without the efficient technology in place; hence, creates the demand for innovation. The programs create competition in the innovation sector and the end-result is a stabilized economic and industrial situations. The innovations are of immense importance because they promote diversity in various fields like the health sector where innovation has enabled shift of treatments from various regions. Innovation boosters are significant in developing economy because they provide the country with he ability to stop relying from developed countries and focus on their human resource to build on their own economy. Governments also have an obligation in nurturing and stabilizing innovation within their countries because innovations are like a process that continually needs a push. Stable economies require a well-constituted research in different fields to realize their goals in this period of fiscal constraints. Hence, most governments are aware of the fact that innovation is the secret to economic growth globally. A good nurturing given by the government towards the growth of innovation yields a good transport and communication system within a country. An example is that it promotes the rise of airline industries, digital revolution and readily avails information to various parties and stakeholders concerned in various fields. All the success in the innovation field is associated with the government’s efficient sponsoring into fundamental research within countries. Hence, the more the governments increase their investments in research, the more their countries will develop from innovation to bring the change they want. Many innovative ideas and innovation are thwarted because of lacking enough funding to conduct a thorough research on the given products or services, but with the governments’ contribution towards this sector, these ideas might be turned into a viable innovation spectrum that creates change in various fields. Governments play their role here by readily availing research instruments like providing vehicles, consultant arrangements, and centers of excellence to address the numerous issues that might be experienced by investors in their attempt to develop the state of art technology within the country. In addition, governments also do a lot to make a one-time investment on innovation. This is tremendously significant in the launch of new innovative products by industries and also in reduction in the actual cost and expenses accrued by these industries in their attempt to introduce their products and services into a new market and compete favorably with other industries producing similar innovative ideas. The physical investments are always in form of infrastructure and legal services to new and prospective innovators. Governments are driven into this one-time venture with the objective of discovering new ventures into the market and increasing their annual revenues in terms of the taxes imposed on the newly introduced ventures into the market. In addition, one-time investment is a process that allows the government to get back investments made by the governments in promoting innovation. Through this, the government is able to control and manage its innovation, which meets the goals of the general stakeholders. The global change has made many countries to find that their job markets cannot meet the demand of various individuals who are graduating with various skills from various colleges and institutions. Therefore, governments concentrate on the development of high-technical industries to create new opportunities for their human resource and also to develop and nurture an innovation system that is central in influencing technological research that promotes development of jobs and opportunities for citizens of different countries (Khandwalla, 1992, p. 301). This is in attempts to create more opportunities and rooms for innovative ideas among its youth and graduates. In efforts to promote innovation, governments share intellectual capital and skills with potential partners coming from both public and private sectors (Great Britain, 2009, p. 14). They perform this by clarifying arrangements with private and public partners to enable them find it easier in the process of starting new ventures that are of extreme importance to the process of innovation within countries. Moreover, governments provide support and contribution to these partners with reference to the required skills in various fields concerned with the process of innovation. Good provision of intellectual and capitol skills points to governments’ ways in which the innovation process would generate value and promote the country’s economy. Governments also promote innovation by providing engagement routes to different technology partners and entrepreneur within their countries. Most entrepreneurs find it difficult to accurately and effectively develop an innovations appraisal and launch it into the government. By ensuring the entrepreneurs that they are willing to purchase the technological innovation, most governments promote innovation because the entrepreneurs are motivated to research more and discover new technologies that will be productive to the country’s economy. Without the governments support, many entrepreneurs might find it difficult to compete favorably in the high competitive environment because of the numerous procurement regulations and the tendering process hence being a barrier. Providing engagement routes offers governments with an opportunity to protect the right of innovators and encourage innovative ideas and products produced by these innovators, as they will be happy that they are enjoying the governments’ protection. Governments focus on the customers’ priorities in attempts to promote and manage innovation and change. Customers value state of the art products and services and the government addresses this by promoting those sectors like public sector organization that completely understands and can easily identify with customers’ needs. An example is that many governments promote the use of broadband in their countries that was a result of innovation and uses state of art technology to lead to an improvement in the health outcomes of citizens. This is also significant in reducing the cost and increasing the revenues collected by the government in various health institutions across counties. Governments are aware of the importance of teleworking in their economies and have therefore, taken various measures to promote its application within their various countries. By promoting teleworking, governments also stand an opportunity of increasing their employments opportunities for their working disabled class. Governments like the United States government have taken various measures like proposing for an increase in budgets to cater for various innovative ideas and products in the teleworking industry. Teleworking gives disabled employees and ability of flexibility in their task thus increasing their productivity in the process. It becomes effective in saving resources as one can work from home. Practically all governments are struggling with expanding E-government in their countries. E-government cannot happen without innovation, therefore, in the process of encouraging this, governments directly or indirectly promotes innovation in their countries. Using E-government also assist governments in maximizing their productivity in different sectors because they are provided with an opportunity to do away with redundant government systems which consumers time and expenditure. In addition, E-government also provides the government with an opportunity of improving on the quality of services they provide for their citizens like increasing the efficiency in government institutions like hospitals and banks. Therefore, it creates a national condition for innovating changes in relation to doing business. Most innovations have their roots in technology; therefore, governments are improving education and skills amongst defense professionals to accurately and efficiently accomplish their task of protecting various bodies and individuals concerned in different areas. An example is that, in numerous government centers concerned with research and innovation, governments have placed cyber corps who are skilled and well equipped to serve their role of protecting the research being undertaken in this institutions. An example of these intuitions concerned with research and technology is the National Science Foundation that is majorly concerned with internet and computer security (Organization for Economic Co-Operation and Development, 2005, p. 15). In promoting innovation and its management, most governments as the Government of Qatar has taken its primary mandate of not charging internet duty on subscribers of different internet providers. This has also involved free electronic transmissions within the country. The benefits that the government gets from lifting the duty fee on electronic transmission and internet subscribers is that it promotes e-commerce that lays grounds for expansion of employment opportunities for its citizens, hence increasing its revenue proceeds. Governments alone cannot accurately predict the significance of innovation in their countries, therefore, they have hired trained professionals to advise them on the best ways of improving science and technology within their counties. These individuals are tasked with the responsibility of identifying viable innovations and making recommendations to the government on the steps to take to make the innovations and ideas productive. These individuals are grouped according to committees and there are numerous committees constituted by the government like science and technology and research and development. Their assignments will be to work for ways and methodologies that the government can use in managing and promoting innovation. Governments have also promoted math and science educations in their countries to serve the purpose promoting innovation within their countries. This is because most science subjects form the foundation for various innovative ideas and products and globally. Promoting the science subjects has assisted the government in bridging the gap between elementary and secondary schools with technology institutions to nurture skills found in various young individuals who have the potential, but lack the resources to exploit their innovation talents and skills. An example is that most science oriented students wills be found pursuing various courses like engineering courses that significantly improves technological advancement. National and Global Barriers to Innovations and Change However, in its attempt to promote innovation, the government has faced barriers in terms of incentives that at times discourages rather than promote innovation. An example is that the incentives pertain to the risk to innovators, which is caused by political and legislative factors that have the potential of destroying innovations that were initially considered good by various stakeholders concerned (Albers & Brockhoff, 2004, p. 111). The government may in many times be blinded by the changes happening within the environment and avoid the risk, they resort in maintaining things going as usual even when failure is eminent from both sides. The traditional government is also a factor that has the potential of discouraging innovation within a given region. Most government budgets are focused on existing programs that can be proven by the various authorities concerned. New ideas require appropriate funding in various fields and when these funds are not awarded, the ideas are thwarted as innovators lack the needed resources to facilitate this. Ideas that are not yet discovered have the potential of turning out to be successful when tested in various fields. The problem with traditional governments is that they do not allocate the needed funds to cater for the numerous innovations and ideas invented and discovered by individuals and industries through research (Wessner, 2008, p. 16). Another factor that limits the government from being innovative is that most officers and officials placed in charge of these sector, are not always committed to ensuring that plans are executed as initially planned by the government. They make promises, but misappropriate the funds awarded to them for the purpose of innovations (Organization For Economic Co-Operation And Development., 2012, p. 18). Conclusion In conclusion, government’s role cannot be underestimated. This is because its contribution in tax incentives creates a suitable environment for the development of new ideas. Innovations amongst individuals and industries is encouraged when the taxes towards the sector are manageable and their risk covered by the government and various concerned stakeholders. The government is also funding numerous programs that are driven towards innovation. These may involve various media programs and institutions that greatly contribute towards the state of art development and also discover new innovations and opportunities. Through regulation laws, the government has also encouraged innovation because it has intervened and both the public and private sectors and individuals and industries are encouraged conduct numerous research of discovering ideas, products and services. References Albers, S., & Brockhoff, K. (2004). Cross-functional innovation management: perspectives from different disciplines : to Klaus Brockhoff for his 65. birthday. Wiesbaden, Gabler. Centre For Educational Research And Innovation. (2010). Inspired by Technology, Driven by Pedagogy A Systemic Approach to Technology-Based School Innovations. [Paris], OECD, Centre for Educational Research and Innovation. Federal Facilities Council. (1996). Federal policies to foster innovation and improvement in constructed facilities: (summary of a symposium). 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