Innovation can help economy in the crisis posed by Ukraine War

The Covid-19 pandemic and the Russia –Ukraine war has shaken the world in an unprecedented way. The resilience of our societies, economies, and healthcare and welfare systems has been experienced as never before. The government has been trying relentlessly to protect public health and livelihoods whilst preserving the business, trade and commerce in supporting economy and households.  In this atypical situation, over the world, research and innovation have proven to be an essential part to prevent economy and livelihoods.

Developed countries like China, the UK, the USA, etc. have given highest effort in research and innovation not only in medicine or vaccination but also in regard to sustainable and inclusive recovery of the economy and uninterrupted study of the students. Now it is the high time to utilize our renewed commitment to modernize our economies and to make them stronger and more digital and more resilient to face the aftershocks of Covid-19 pandemic and the ongoing Ukraine war situation.

Innovation is a new idea, creative thoughts, and new imaginations or method which is often viewed as the application of better solutions that meets new requirements or existing market or people's need. Executives and planners need to break away from traditional ways of thinking and use investigative minds to overcome the present crisis. It is not just having an idea - but executing it so that it creates value for money. As we understand innovation drives productivity, growth and living standard. And business innovation finds ways to generate more value from existing resources. As a result, innovation in business is directly or indirectly important driver of productivity, growth, and is the principal source of prosperity of national economy. In a crisis time, there is no alternative to think differently and give importance on innovation in business.

Innovation can be manifested in four distinct areas. First, product innovation is the capacity of a firm to introduce new products like vaccine, medicine and services ahead of competitors, to anticipate consumer needs. Second, market innovation is the capacity of a firm to decide to change its market geographically, virtually or creatively. Third, process innovation is the capacity to change how goods and services are produced and delivered to reduce cost, reduce time, reduce visits of customers to improve efficiency and increase convenience for customers. Finally, organizational or structural innovation is the capacity to convert creativity and ensure good governance in delivering quality service to its citizens. The governance approach is being pursued by the Cabinet Division of the government to improve the status and quality of the delivery of services to its citizens. To spur innovation countries need to reorient policy to promote diffusion of existing technologies, not just invention; support innovation in the services sectors, not just manufacturing; and strengthen firms’ innovation capabilities.

These governance innovations in regard to process simplification may improve the status of public service but it can impact very little in the process of business, commerce and finally recovery of economy of the country.  The innovation approach is necessary everywhere such as in agriculture, education, health service, medicine, business, trade, commerce, import export, remittance, custom duties, animal husbandry, and fisheries and so on specially in livelihoods during this Ukraine war crisis. The government of Bangladesh under the dynamic leadership of our Prime Minister has been giving high priority in the area of innovation. Now concerted efforts with the business community may give a new momentum in our economy. Export earning is increasing and all the indicators of the economy have been getting positive direction towards development.

USA National Commission on Innovation & Competitiveness Frontiers has taken a plan to redefine 21st century's productivity, prosperity and security for exploring the future sustainable production and consumption and further development of economy and international trade. Canada has the foundation to be one of the top five most innovative nations in the world. The Innovation and Skill Plan of Canada is recognized as one of the most innovative commissions in the world and the country has suffered very little economic shock by the Covid-19 pandemic. Innovation Commissions have existed in various forms in many developing nations of the world to ensure optimal flow of knowledge in the market for accelerating business, improving status of the governance and transforming competitive international trade for boosting the economic development.

The government needs a group of experts, bureaucrats and business leaders to get their contribution under a formal framework. Government and financial institutions may find options to influence innovation in the private sector in the form of grants or research and development (R&D) loans dedicated for the business sector or various tax incentives for companies dealing with R&D and innovation. The government's recovery package must contain a sizeable policy and funding opportunity to boost research and innovation, as decisive driver of our future business and economy. Digital transformation is most important research aspect now in the post Covid-19 pandemic era.  The innovation in competitiveness of industry, business with a focus on small and medium-sized enterprises, start-ups, and self-employment, outsourcing, e-commerce, resilience of industry, education providing approach, trade, commerce and business may be reshaped from the traditional foundation for meeting up new demands. The Innovation Commission and its policies may be considered as key areas by setting out a clear path for the future and identifying a range of actions in support of industry, trade, commerce and business. These actions will reinforce complete recovery, create a global level playing field by trade intervention with the guidelines of WTO, health guidelines of WHO and enhance the sustainable transition of circular economy, together with the key issues of skills and investment. The Commission will enable us to facilitate changes for the recovery of economy by putting industry and business at the heart of our all actions. It is a new way of working together, which connects key players within specific value chains and allows co-creating solutions targeted at specific sectoral and competitive challenges. We never know when the world would be free from the shocks of Covid-19 pandemic, nd the effects of Ukraine war. Our prudent preparation with proposed Innovation Commission may save us from the future shock of world market, job retention and creation of new jobs and people's livelihood leading to the way toward a sustainable future.

Establishing an Innovation Commission can start the transformation from a startup business to a high-income industry– a move that will benefit the economy and enhance the welfare of its citizens. The Innovation Commission might be a good option, not only in a post pandemic situation but in normal time as well. The commission can be a suitable institution in our country that may strive determinedly to seize for the benefit of our economy. This is legitimately required to overcome predictable global market failures in this post Covid-19 pandemic and existing Ukraine war situation and to overcome the challenges of 21 century. Innovation is not new, but the current acute need for innovation and the new ways it can be done are new. Innovation is in the 'doing'. It is not an end product, it is a way of working which views the work as a continual experiment. 

The writer is a former Senior Secretary and currently teaching as an Adjunct Faculty at the Bangladesh Institute of Governance and Management (BIGM). He can be contacted at [email protected]