They include creating many new, highly skilled jobs, coming to grips with the fiscal constraints on governments, and planning a more environmentally sustainable basis for development. Perhaps the most significant challenge in achieving long-term growth is the transformation of our economic sectors and institutions to adopt a culture of innovation. This is not a simple nor short-term task. Innovation occurs in every place of work through continuous improvements. It can take place in the way we finance, market, and diffuse new technologies, processes and services.
Innovation is a dynamic process related to achieving or improving competitive advantage.
It entails the development, adaptation, or improvement of new products, services, processes, institutions, partners, ideas, systems or solutions. This broader view of innovation, referred to as economic innovation, encompasses not only science and technology, but the full range of economic activities relevant to competing in the marketplace in areas such as communications, marketing, financing, planning strategic alliances, stakeholder partnerships, corporate organization, education and training. An innovative economy demands a systematic approach to innovation - a strategy that mobilizes new combinations of people, capital, resources and ideas. To participate effectively in such an economy, new partnerships and relationships will be formed. The concept of systems of innovation as evolved to capture the dynamic nature involved in the efforts to develop, apply, transform and distribute knowledge and technology.