One important way, the growth possibility frontier, often, expand massively, is because of innovation and creativity. Just look at Steve Jobs and his invention of the personal computer as an example. But why does not innovation and creativity, occur and what type of environment, can innovation and creativity flourish.
From the Wikipedia: In business and economics, innovation is the catalyst to growth. With rapid advancements in transportation and communications over the past few decades, the old world concepts of factor endowments and comparative advantage which focused on an area’s unique inputs are outmoded for today’s global economy. Economist Joseph Schumpeter, who contributed greatly to the study of innovation economics, argued that industries must incessantly revolutionize the economic structure from within, that is innovate with better or more effective processes and products, as well as market distribution, such as the connection from the craft shop to factory. He famously asserted that “creative destruction is the essential fact about capitalism”. In addition, entrepreneurs continuously look for better ways to satisfy their consumer base with improved quality, durability, service, and price which come to fruition in innovation with advanced technologies and organizational strategies.
From Innovation Files: We live in a global economy and society built on our investments in computer and network technology. Our connectedness—our ability to work and communicate easily with those outside of our borders–is the foundation of our digital economy. Policymakers are increasingly recognizing that the free flow of information online is important both for promoting democratic values (see Secretary Clinton’s remarks last year on Internet Freedom) and for promoting commerce (see the Department of Commerce’s Internet Policy Task Force examination of this issue). Yet barriers, both new and old, impair our connectivity and limit the potential of free trade. Especially from the commercial perspective, restrictions on the flow of information impact innovation, collaboration, trade, investment and economic activity.
Examples of barriers to the free flow of information include local data storage requirements for cloud computing, outdated regulations for voice-over-IP (VoIP) services, inadequate protect of digital copyrights, overlapping and conflicting data privacy regulations, restrictions on content and speech and liability for intermediaries, such as user-generated content sites. While these barriers and their origins have been explored in other contexts, I would like to address some of the potential solutions available to improve the free flow of information by looking at three specific issues: cloud computing, online copyrights, and electronic identities (See more at: http://www.innovationfiles.org/strategies-to-reduce-barriers-to-the-free-flow-of-information-online/#sthash.TI0JXFbV.dpuf)
I been following global news for quite a while, and even I am a Progressive, meaning Socialist Democrat, my economic theory also include Joseph Schumpeter, on his economic thinking, and Joseph is the father of entrepreneurship, which relates to innovation and creativity, so I been following news on innovation and creativity for a long time & notice recently, there has been an incredible, up-tick, an awakening, on news coverage of innovation and creativity issues.
(Up-Date) MIT Slone Management Review has an interesting article about creative disruption, long noted as core of innovation and creativity, needs crtical thing.
(Up-Date) New says, US corporations, is moving more and more away from “Traditional” performance review, to include more review based on other factors, such as innovative and creative ability.
(Up-Date) News report asks, when a company run into a wall, on innovation, would an innovative laboratory work, and in the photo journalism with the article, had a picture of such lab, called “Where the crazy people work.”
(Up-Date) India’s leader, Modi, made a very important point, that innovation is more than business success, but also about important progress social development.
(Up-Date) The 2030 agenda, on development, has incorporated, innovation into a host of action program, to reach that 2030 goal.
(Up-Date) One of the top stock market investor, have came out to criticized global CEO, of focusing on financial modeling, at the expense of innovation and capital spending.
(Up-Date) Many countries are cross-fertilizing their efforts on innovation, such as Germany and India and US and South Korea.
(Up-Date) Euro Parliament is putting billions towards building an innovative Europe.
(Up-Date) India’s leader Modi, made a proposal to the BRICS grouping on a joint effort in innovation.
(Up-Date) Lots of talk about sustainable innovation & meetings on this subject coming up.
(Up-Dated) Australia is putting billions into scientific research.
(Up-Date) NYSE just changed the rules, to allow start-ups, to crowd funding, through the NYSE.
(Uo-Date) China’s 5 years plan includes focus on innovation, but many doubt, with the information blockade & restrictions on rights to create, if in fact, China can innovate & life itself, out of being a copy-cat & reverse engineering, expert.