Innovation Drives Economic Development
The two ways to increase economic output within an economy are to:
- increase the number of inputs in the productive process, or
- think of new ways to get more output from the same number of inputs (productivity through innovation)
Schumpeter’s concept of innovation defined as “the introduction of new or significantly improved products (goods or services), processes, organizational methods, and marketing methods in internal business practices or the marketplace”.
Innovation is believed to be the fundamental source of significant wealth generation within an economy.