Day 28 – Q 4. Innovation is the key to economic growth. Do you agree? Substantiate.
4. Innovation is the key to economic growth. Do you agree? Substantiate.
नवाचार आर्थिक विकास की कुंजी है। क्या आप सहमत हैं? पुष्टी करें।
Innovation isn’t invention. It’s the act of refinement and recalibration to achieve particular goals. And when the goal is economic growth, innovation is the single most important factor that distinguishes a prosperous economy from an impoverish one.
Fundamentally there are two way of increasing output of economy; first, increase the number of input which go through the productive process, second, think new ways in which we can get more output from the same number of inputs and this can be possible through innovation
(1) Agriculture: only 20% of land is cultivable in Israel after that also they contribute 2.5% of GDP and produced 95% of its own food requirement, this is because of innovation like drip agriculture, soil conditioner etc.
(2) manufacturing: according to oxford business group, Thailand is the rising manufacturing hub which contributes 9.3 million of job, in Indonesia manufacturing contribute a quarter of GDP etc. all these are possible because of the employment of innovation.
(3) tourism: Internet, information technology, world wide web etc. revolutionized the tourism sector, across the world contributes to economic growth.
(4) e-commerce: this is itself an innovation a “new idea” which resulted in Amazon, Flipkart, Walmart etc and now in India it contributes 4% of GDP etc.
(5) education and skill
Innovation in education and skilling can create demographic dividend by festering culture of demographic temperament.
New reliable safety features in public offices, schools can ensure women to participate in economic growth.
New innovative ways of public service delivery like video conferencing with gram sabha etc. can reduce time lag in delivery of services and ensure growth of region
but innovation is alone cannot lead to economic growth
(1) Acceptance by society: GM crops were innovated since a decades ago but still, lots of country including India has not accepted it.
(2) investment: investment and innovation both are a parallel to each other, for economic growth innovation is needed and for innovation investment is needed.
(3)skill: countries like china, America are thinking to employ the new innovation like IOT, AI etc. India and many countries of South Asia does not have the required skill for this, at large.
It is often said that Americans built roads and the roads built the America. At the time, roads didn’t offer much economic returns and so even an idea as basic as connecting every place with asphalt roads was truly innovative. Ultimately it delivered unimaginative economic growth and drives home the point that even the smallest of innovations carry the potential to deliver massive economic dividends.
Best answer Ranjana Singh Rathore