When we think of innovation, we may think of introducing new products and technologies to the market. But have we also considered the positive effects they could have on the economy?
Australian businessman Darren Herft has considered these factors before. As an innovator himself, he educates people about fiscal policy and innovative new technology on his website, where he also covers topics such as private equity and economics.
Darren Herft believes that innovation is the key to economic growth and prosperity. He says that innovation can make economies more sustainable and even lower their overall debt burden over time by opening new jobs and opportunities for citizens.
That’s why he thinks it’s important to educate people about the value of innovation on a global scale. He also believes reforming current fiscal policy measures to incentivize innovation is the first step in the right direction.
There is a correlation between the innovation index of a nation and the growth of its economy. The more nations innovate, the better overall effect it has on their economy over the long term.
That is why nations are working to refine their innovation strategy across sectors. Take the U.S. for example, as they attempt to improve innovation in their manufacturing sector. Countries in East Asia and Europe are beginning to top the charts in global innovation in those sectors by implementing concrete policies to grow innovation. To summarize, innovation doesn’t happen by accident. It requires a thoughtful plan.
A report by the Boston Consulting Group (BCG), the National Association of Manufacturers (NAM) and the Manufacturing Institute (MI) produced a joint study on global innovation in 2009, where Singapore topped the list. For over the past decade, this has remained true with Singapore consistently ranking in the top 10. In Bloomburg’s 2020 Innovation Index, Singapore ranked in the top three.
Innovation is often calculated using several metrics such as: research and development spending, manufacturing capability and concentration of high-tech public companies.
But what does innovation mean to Darren Herft?
For Darren, it’s all about integration. It’s about developing new technologies and expanding the role of current technologies to make people more efficient, and to ultimately make the most out of current resources. He believes in improving productivity, optimizing workflow and improving business processes using technology.
Darren recognizes that we can provide people who are out of employment with financial benefits, but we can also advance fiscal policy so that governments can play an active role in incentivizing innovation. Innovation improves the economy and therefore helps alleviate the potential economic burden that individuals and nations may face over the long term.
Darren says, “You can provide the same type of monetary funding to individuals but do it via companies that are creating new revenue sources, new jobs and new innovation.”
Darren Herft believes this is an effective way to address the unemployment problem with a totally new, innovative approach.
He mentions that innovation is not always perfect. Sometimes, there will be a company, corporation or idea that fails to work. That’s simply a consequence of innovating. It’s impossible to get it right every time but trying is a step in the right direction.
Darren Herft is an entrepreneur with a vision, and he believes that innovation is the key to building sustainable, thriving economies. He says it’s a process that needs to be enacted through fiscal policy.