ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Why do we need innovation? One of the major benefits of innovation is its contribution to economic growth. Simply put, innovation can lead to higher productivity, meaning that the same input generates a greater output. As productivity rises, more goods and services are produced – in other words, the economy grows.

Detailed explanation-2: -Economic growth It is conventionally measured as the percent rate of increase in real gross domestic product, or real GDP. Innovation is responsible for up to 85% of all economic growth. There’s generally two ways to increase the output of the economy: Increase the number of inputs that go to the productive process.

Detailed explanation-3: -Innovation is vital to your company’s success in today’s highly competitive business environment, especially as customers become more demanding and savvy. Entrepreneurs need an edge to survive and stand out. Innovation can provide that edge-boosting your productivity, growth and profitability.

Detailed explanation-4: -It is taken as axiomatic that innovative activity has been the single, most important component of long-term economic growth and this paper will start by drawing upon the findings of a very influential paper published by my colleague at Stanford, Prof. Abramovitx, back in the mid-1950s.