Is China shape up to be the next nation of innovation, moving away Essay

Is China shape up to be the next nation of innovation, moving away from the reputation of world's factory - Essay Example It is not just the emerging economies that need to be innovative; the developed countries have to step-up the rate of innovation to drive faster productivity growth that will help sustain healthy economic growth rates. Innovation leads to increased productivity and prosperity of a nation which in turn means world economic growth. Innovation addresses the most pressing social and human challenges. The social and human challenges can be met through education which brings about lifestyle changes in the people. Overall, the national environment matters to attain success in innovative activity. According to a recent survey conducted by the research firm the Economic Intelligence Unit Japan has been declared as the most innovative country, ahead of the US, Switzerland and Sweden. Innovation according to this study is â€Å"the application of knowledge in a novel way, primarily for economic benefit† (Blackcoat, 2007)2. The study has also indicated that China will see great progress for innovation while the US will remain the most â€Å"suitable place for innovation†. The study further suggests that there is no substitute for good education or for policies that encourage investment in IT communication infrastructure (Finfacts, 2007)3. Businesses consider innovation as a way to beat their competitors. For the economy to prosper the governments see the need for an innovative environment. Hence, innovation, government and businesses are linked together (Valery & Kekic, 2007)4. Firms collaborate with customers to product innovative products and personalize it; process innovation becomes important to design and improvise on the existing product and enhance productivity. Talents from different economies interact with each other to strengthen the links among personalization, collaboration and innovation. This has far-reaching implications for global business and for the nation