The current crisis is the fi rst of this severity to hit many countries, since they have shifted to knowledge based service economies where investment in intangible assets is of equal importance as investment in machinery, equipment and buildings. Efforts to stimulate the economy need to both refl ect the current drivers of economic growth and take advantage of the process of “creative destruction” to accelerate structural shifts towards a stronger and more sustainable economic future (Canton and Uhlig 1999). Innovation policies need to be adapted to current conditions both in terms of how such policies are crafted to work, but also as elements of stimulus packages that may often be the foundation for these medium- and long-term initiatives. Some countries are developing a strategic response to the crisis focusing on two priority areas: fi nance, competition and governance; and restoring long-term growth. As part of this strategic response, governments in many countries have analysed the likely impact of the downturn on the drivers of long term economic growth and the innovation related items in policy responses of major countries. The economic crisis has prompted an immediate response by governments to avoid a collapse of the fi nancial and banking systems and limit the economic effects of the credit crunch. Such policies aim at stabilising the economy and initiating a rapid recovery. But policies also need to ensure that the recovery is durable, i.e. based on sustainable growth. The crisis should not damage the drivers of long-term growth, but should instead be used as a springboard to accelerate structural shifts towards a stronger, fairer and cleaner economic future. Failing to do so might lead only to a temporary recovery as the macroeconomic and structural roots of the current downturn would remain untouched. This implies integrating long term concerns in the short term policy packages currently assembled by governments and implementing specifi c policies aimed at strengthening the supply side of the economy. While the impact of some of the latter actions may emerge in the medium- to long-term, they warrant consideration now because:  they add credibility to government’s borrowing demands that are imposing long-term debt, thus making a contribution to fi scal sustainability; 258 Marek Dziura, Fabio Fragomen  they take advantage of structural changes imposed by the crisis to accelerate a redeployment of resources from ailing activities to those that offer the largest longer term economic and social benefi ts. The foundation for these medium- and long-term initiatives consists of:  fostering innovation through promoting entrepreneurship;  investing in smart infrastructure;  encouraging R&D;  green investment;  upgrading the skills of workers;  steering market actors towards innovation related investments, and  accelerating activities for which barriers may have been too high otherwise.

INNOVATION FOR SUSTAINABLE GROWTH AS THE WAY TO SURVIVE IN ECONOMIC CRISIS

FRAGOMENI, Fabio
2012

Abstract

The current crisis is the fi rst of this severity to hit many countries, since they have shifted to knowledge based service economies where investment in intangible assets is of equal importance as investment in machinery, equipment and buildings. Efforts to stimulate the economy need to both refl ect the current drivers of economic growth and take advantage of the process of “creative destruction” to accelerate structural shifts towards a stronger and more sustainable economic future (Canton and Uhlig 1999). Innovation policies need to be adapted to current conditions both in terms of how such policies are crafted to work, but also as elements of stimulus packages that may often be the foundation for these medium- and long-term initiatives. Some countries are developing a strategic response to the crisis focusing on two priority areas: fi nance, competition and governance; and restoring long-term growth. As part of this strategic response, governments in many countries have analysed the likely impact of the downturn on the drivers of long term economic growth and the innovation related items in policy responses of major countries. The economic crisis has prompted an immediate response by governments to avoid a collapse of the fi nancial and banking systems and limit the economic effects of the credit crunch. Such policies aim at stabilising the economy and initiating a rapid recovery. But policies also need to ensure that the recovery is durable, i.e. based on sustainable growth. The crisis should not damage the drivers of long-term growth, but should instead be used as a springboard to accelerate structural shifts towards a stronger, fairer and cleaner economic future. Failing to do so might lead only to a temporary recovery as the macroeconomic and structural roots of the current downturn would remain untouched. This implies integrating long term concerns in the short term policy packages currently assembled by governments and implementing specifi c policies aimed at strengthening the supply side of the economy. While the impact of some of the latter actions may emerge in the medium- to long-term, they warrant consideration now because:  they add credibility to government’s borrowing demands that are imposing long-term debt, thus making a contribution to fi scal sustainability; 258 Marek Dziura, Fabio Fragomen  they take advantage of structural changes imposed by the crisis to accelerate a redeployment of resources from ailing activities to those that offer the largest longer term economic and social benefi ts. The foundation for these medium- and long-term initiatives consists of:  fostering innovation through promoting entrepreneurship;  investing in smart infrastructure;  encouraging R&D;  green investment;  upgrading the skills of workers;  steering market actors towards innovation related investments, and  accelerating activities for which barriers may have been too high otherwise.
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Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/11570/2330021
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