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The World Bank is currently advising newly industrialized countries on how to encourage growth and they have asked for your help - Research Paper Example

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Among them is Technology and innovation, which provides for an opportunity for firms to invent and re-invent new products and services for offer into the markets (Arora,…
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The World Bank is currently advising newly industrialized countries on how to encourage growth and they have asked for your help
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The World Bank is currently advising newly industrialized countries on how to encourage growth and they have asked for your help

Download file to see previous pages... Thus, through innovation, which is accompanied by patenting of the newly generated ideas or commodities, the firms eventually grow and obtain a reasonable market share for their products (Arora, Fosfuri, & Gambardella, 2001). Tax cuts and state financing is the other method that has been applied to promote the growth of firms in these countries. The governments of these countries have created institutions, for example the Economic Development Board in Singapore, which provides long and short term financing for firms, promotes industrial investment and creates an enabling environment, such as industrial estates for firms to operate (Arora, Fosfuri, & Gambardella, 2001). This way, firms are afforded an opportunity to thrive in the tough economic conditions through financial support, which enables them to grow and eventually become large companies. The most suitable method, which should be adopted by the firms in these countries to grow economically, is innovation. The rationale behind this is the fact that, innovation helps a firm to develop new products, services and ideas, which help it, compete effectively with other firms in the market, as opposed to government financing and support, which serves to increase competition (Arora, Fosfuri, & Gambardella, ...Download file to see next pagesRead More
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