Home ›› 21 Jul 2022 ›› Editorial
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 tested as never before. The government has been trying relentlessly to protect public health and livelihoods whilst preserving business, trade and commerce in supporting the economy and households.
In this atypical situation, over the world, research and innovation have proven to be an essential part of boosting the economy. Countries like China, the UK, and the USA have given the highest effort in research and innovation not only in medicine or vaccination but also regarding sustainable and inclusive recovery of the economy and continued study of the students. Now it is high time for renewed commitment to modernize our economies and to make them stronger and more digital; more resilient to face the aftershock of the Covid-19 pandemic and the existing Ukraine war situation.
Innovation is a new idea, creative thought, and new imagination or method which is often viewed as the application of better solutions that meets new requirements. Executives and planners need to break away from traditional ways of thinking and use the investigative mind to overcome the present crisis. It is not just having an idea - but executing it so that it creates value for money. Innovation drives productivity, growth and living standard and business innovation find ways to generate more value from existing resources. As a result, business innovation is directly or indirectly an important driver of productivity, and growth, and is the principal source of prosperity for the national economy. In a crisis time, there is no alternative to think differently and give importance to 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 vaccines, 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, and 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 has been pursued by the Cabinet Division of the government to improve the status and quality of the delivery of services to its citizens. These governance innovations regarding process simplification may improve the status of public service but they can impact very little in the process of business, commerce and finally the economic recovery of the country. The innovation approach is necessary everywhere such as agriculture, education, health service, medicine, business, trade, commerce, import-export, remittance, custom duties, animal husbandry, fisheries and so on. The government of Bangladesh under the dynamic leadership of our Prime Minster has been putting a high priority on the area of innovation. Now concerted efforts with the business community may give new momentum to our economy. Export earning is increasing and all the indicators of the economy have been getting positive direction towards development.
The USA National Commission on Innovation & Competitiveness Frontiers has taken a plan to redefine the 21st century's productivity, prosperity and security for exploring the future sustainable production, consumption and further development of the 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 had a very little economic shock from 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 the status of the governance and transforming competitive international trade for boosting economic development.
A government needs a group of experts, bureaucrats and business leaders to get their contribution under a formal framework. The 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 to 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 drivers of our future business and economy. Digital transformation is the most important research aspect now in the post-Covid-19 pandemic era. The innovation in the competitiveness of industry, business with a focus on small and medium-sized enterprises, start-ups, and self-employment, outsourcing, e-commerce, the resilience of the 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 policy may be considered 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 the completeness, create a global level playing field by trade intervention with the guideline of WTO, and health guideline 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 the 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-created solutions targeted at specific sectoral and competitive challenges. We never know when the world would be free from the shocks of the Covid-19 pandemic and the effects of Ukraine war. Our prudent preparation with the proposed Innovation Commission may save us from the future shock of the world market, job retention and creation of new jobs and people's livelihood leading to the way to a sustainable future.
Establishing an Innovation Commission, which will benefit the economy and enhance the welfare of the citizens might be a good option, not only in a post-pandemic situation but in normal times as well. Innovation Commission can be a suitable institution in our country that may strive determinedly to gain benefits for our economy. This is urgently required to overcome predictable global market failures in this critical situation and to overcome the challenges of the 21st century.
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 s22arefin@gmail.com
