What is the relationship between innovation and economic development?
The relationship between innovations and economic development lies in the way innovations can be applied to the economic development of the country. One of the links between innovation and economic development is the fact that innovation creates new business opportunities with accompanying ways for economic development. The most direct connection between innovations and economic development is the use of knowledge or human capital necessary for the higher incidence of innovation in favor of the economy.
The interconnection between innovation and economic development will lead to the conclusion that the country blessed by a large number of innovators will reflect the advantages of such wealth through the development of the economy. Innovation requires the application of knowledge to create opportunities that may not be obvious to those who lack the same quality of human capital. In this sense, there is a connection between interlaration and education. Countries with well -developed educational systems usually have a higher number of people with human capital necessary for a high level of innovation compared to thosecountries that do not do so. The economic contribution to the country can be seen in the way citizens of the country use their knowledge to develop the economy.
Business is a direct offshoot of innovation because of the fact that most new ideas need a business structure to implement them. For example, an innovative entrepreneur who decides to apply his ideas to a business company, will have to hire employees, rent a business instead of business and generally carry out other types of real estate and human capital investments, including paying taxes to the government. Where the idea is solid, the enterprise will grow, which will lead to the creation of other subsidiaries, part of the interships with foreign investors, a reduction in unemployment and other ways for the development of the economy.
Some countries with fewer natural resources, especially Asia, are largely relying on the abundance of human capital as a means to achieve economic rOzvoje. The innovative spirit of citizens of such nations can be seen in their successes in many areas, including science and technology. The application of this innovation combined with business opportunities is a pattern that has led to great economic successes apparent in the perception of countries such as some of the economic energy conjectures in the world.