...Innovation, Ethics, and Entrepreneurship Morgan P. Miles Linda S. Munilla Jeffrey G. Covin ABSTRACT. This paper is a response to Ray’s (2004) recent proposal that the intellectual property rights (IPR) attached to potentially life saving/life sustaining innovations should become public goods in cases where markets are either unable or unwilling to pay for the creation of the intellectual property. Using a free market approach to innovation based on Western moral philosophy, we suggest that treating intellectually protected life saving/life sustaining innovations as public goods will likely reduce social welfare over the long term. KEY WORDS: entrepreneurship, ethics, innovation, intellectual property rights, policy ‘‘For the Scripture says, ‘Do not muzzle the ox while it is treading out the grain,’ and ‘The worker deserves his wages’ ’’ 1 Timothy 5:18. Ray (2004), in a recent critique of Miles et al. (2002), proposes that the intellectual property rights (IPR) generated from any life saving/life sustaining entrepreneurial initiatives should be transferred to the public domain whenever potential users of these innovations are unable or unwilling to enter into mutually beneficial exchange relationships with the creators of the IPR. This reply offers a perspective on why Ray’s (2004) imperative does not maximize social welfare and, in fact, will tend to diminish social welfare over the long-term as a result of lower economic incentives for innovation. Introduction ‘‘Few...
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...Research Proposal for the Ph. D. Admissions: 2015-16 A Geographical Study of Natural Disasters and their Management in Uttarakhand Submitted By SANJAY KUMAR M. A. (GEOGRAPHY) Introduction: Disasters are not new to mankind. They have been the constant, though inconvenient, companions of the human beings since time immemorial. Disasters continue to occur without warning and are perceived to be on an increase in their magnitude, complexity, frequency and economic impact. It may be noticed that the number of disaster events which was 73 in 1900-09 have increased to 4494 disaster events during 2000-09. Source: Centre for Research on Epidemiology of Disasters (CRED) The economic cost associated with disasters has increased more than ten-fold during 2006 to 2011 i.e. from 34.5 billion US $ in 2006 to 366 billion US $ in 2011 (Source: Annual Disaster Statistical Review, 2012). Scenario in India is no different from the global context. India is losing about 2% of GDP on an average due to the disasters. The country is prone to disasters due to its unique geophysical setting and socio-economic conditions. On account of its multi-layered vulnerability, the country has witnessed an increase in the occurrence of disasters resulting in widespread devastation. Disasters disrupt progress and destroy the outcome of developmental efforts over several years, often pushing nations in quest for progress back by several decades. "Disasters are sudden adverse unfortunate extreme...
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...rapid development of dynamic global economy, increasingly countries are seeking breakthroughs of their economy development. Stimulated by these ever-increasing competition pressures, exploitation of new ideas and businesses which are of great potential to thrive economies, accordingly, is gainning widespread attention (Mansfield, 1972; Wong et al., 2005). In consequence, on a global scale, not only some developed countries with strong capability to absorb and implement new ideas, but also some emerging developing countries, are taking measures to inspire entrepreneurship and innovation with purposes of benefiting economic development from these competitive advantages (Stoneman, 1995; Zhao, 2001). It is universally held that entrepreneurship and innovation are complementary and their combination can efficiently contribute to economy performance (Grupp, 2001; Stoneman, 1995). During the transfer from idea creation to eventually economy development, innovation is supposed to be a necessary condition, but it also demonstrates great insufficiency which can be completed by entrepreneurship’s mediating effects (Audretsch, 1995; Camp, 2005). This essay will primarily conduct a brief definition of entrepreneurship and innovation while introduce the role of problem solving and creativity, and thereby observe the synergy between entrepreneurship and innovation. Then theoretical and practical analysis will be made in their repective relationship with economy development. Ultimately, the holistic...
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...to nature, not in terms of transforming nature for human benefit. Thinking in terms of conformity constrains individual freedom as far as innovation, which is the opposite of what TP is trying to accomplish. Inner-directed individuals are required for TP in order to produce innovative ideas that are both scientific and technical, in order to understand and control natural processes. Such individuals are considered to be autonomous thinkers. Free market economy is essential to the idea of TP. Free market society is a system in which goods and services are exchanged, and privately owned. The reason this is essential is because free market society creates and involves competition. Having a free market society, that is competitive, leads to innovation. Competition is in my mind, the basis for innovation. People would not be driven to innovate or think in such creative ways if they were not being challenged, or competing against others is such an economy. Innovation (which is derived from free market economy and its competition) is very important in terms of TP. In the Wealth of Nations, Adam Smith argued that a free market economy encouraged innovation. He believed that innovation was derived from the specialization of labor. The free market economy leads to division of labor which therefore leads to specialization. Innovation derived from specialization includes such ideas as labor saving devices (such as the cotton gin), which then also leads to an increase in productivity...
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...Business and Innovation in Networked Economy Course Background and Introduction The dynamic of our society, and particularly our new economy, is increasingly obeying the logic of networks. Understanding how networks work will be the key to understanding how the economy works. We are connecting everything to everything. Businesses and governments that are able to effectively employ information and communication technologies find more sophisticated and efficient ways of managing their external relationships and communications. This growing ICT usage helps form the critical mass of electronic transactions which supports a networked economy, both in terms of the network size and the demand for associated goods, services, labor and policy reform. The critical characteristic of the networked economy is a radical decentralization of physical capital necessary for the production, storage, distribution, and processing of information, knowledge, and culture. This decentralization has caused a radical distribution of the practical capability to act in these areas, creating new levels of efficacy for individuals, who increasingly shift from being consumers to being users and producers. Individuals have now become capable of doing much more for themselves and for others, both alone and in vastly more effective loose collaborations with others. In the industrial economy, hobbyists, no matter how committed, could not come together on the weekend and compete with the General Motors of...
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...“In the innovation economy, the network will be the value innovation engine”. Provide an insightful review of the meaning of the statement along with at least two examples. An economy which is characterized by intangible assets like knowledge, innovative capabilities, technology and entrepreneurship are positioned at the centre of the model rather than as independent forces is the Innovation Economy. In such an economy, the key ingredient is the network. The main objective of the innovation economy is to boost higher productivity and lessen the prices. But the real problem with the objective is that it needed a proper collaboration between all the four forces. Network is the real bridge between the four forces which drives the innovation economy. The source of knowledge, the communication of technology, the idea of entrepreneurship and the driver of innovation is nothing but the Network. The perceived value of a user can be known through Network. In short, the innovation economy is driven entirely by network. Without network, the resources and communication could have been nearly impossible as they drive the innovation. And hence network is the value innovation engine for the innovation economy. From the above image, it is very clear that with the advancement in technology and increased pace of information sharing, the global boundaries have reduced and more or less turned blurry. The network is becoming stronger day by day and thus leading to a unique value innovation engine...
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...1 Entrepreneurship, Innovation, and Economic Development: An Overview Adam Szirmai, Wim Naudé, and Micheline Goedhuys 1.1 Purpose of the book Economic development requires sustainable and shared increases in per capita income accompanied by changes in the structural composition of an economy towards higher value added goods and more efficient production methods. Entrepreneurs can contribute to economic development by facilitating the reallocation of resources from less to more productive uses (Acs and Storey 2004), by performing ‘cost-discovery’, ‘gap-filling’, and ‘input-completing’ functions in the economy (Leibenstein 1968; Hausmann and Rodrik 2003) and by supporting structural change (Lewis 1954; Gries and Naudé 2010). These roles have recently been the subject of a growing literature (see e.g. Minniti and Naudé 2010; Naudé 2010a, 2010b, 2010c). A neglected function in this literature is the potential role of entrepreneurs as innovators in developing countries. Joseph Schumpeter pointed out a century ago that entrepreneurs are often innovators, bringing new goods and technologies to markets, opening up new markets, processes, and ideas, and commercializing new knowledge. But, it is often mistakenly suggested that innovation by entrepreneurs is less important for growth in low-income developing countries than in more advanced economies.1 A substantial literature has been devoted to understanding the conditions under which entrepreneurs innovate, and the nature and evolution...
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...Question Innovation is an important component of economic policy. Discuss Answer 1.0 Introduction “Today, more than ever, INNOVATION is central of survival” (Peter Drucker). Innovation has been an important component for economic growth, national economic competitiveness and economic policy for many country. It can occur in any sector of the economy, including government services such as health or education. Supporting nowadays with the rapid growth of technology industries, many policymakers in many nations have increasingly come to see technological innovations as a key driver of economic growth. This is why so many nations have made the promotion of innovation and new technologies a central part of their economic policy. Before discussing further about innovation and see why innovation play an important role for economic policies, it is important first to define innovations and its policies. Some people don’t really know what’s exactly an innovation. They are confused between invention, progress, innovation and updates. So it’s relevant to point out wrong ideas that peoples usually have over it and its creation to be able to erase it. Many people think of innovations as only technological in nature, resulting in shiny new products like Samsung’s Smartphones, Apple’s iPad, Sony’s PlayStation or in enhance machines or devices, such as lasers, autonomous robotics machines etc. Others might be thinking that innovation pertains only to research and development (R&D) activity...
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...To what extent, is the success of Australia's Fiscal policy, based on the changes of the current federal budget, viable for a stronger economy? This essay aims to illustrate, the success of Australia’s fiscal policy implemented by the current federal budget and its effects for the long-run. In relation, do these strategies provide sufficient evidence that ensures Australia’s “position of strength in the world economy” and if they are considerably better, in comparison to other international economic environments? I will focus primarily on the government’s expenditure on investment to boost the economy and the resulting effect it has towards the productivity, innovation and competition for Australia. The 2013-14 Budget, which illustrates a reduction in taxes of about $ 17 billion and an increase in expenditures of $ 24 billion, is strongly coherent, increasing aggregate demand by about 3 per cent. This process of fiscal expansion has been possible given the low Australian government debt that allows restoring an even budget by 2015 – 2016. There are several fiscal challenges directed to the 2013 Federal Budget. One particular Domestic challenge involves the importance on maintaining fiscal and monetary policy alignment. The previous federal budget 2012-13 fails to preserve alignment between fiscal and monetary policy. As a contractive fiscal policy lead to a decreasing aggregate demand by about 2%, the Reserve bank was cutting interest rates to stimulate demand. Thus, it is...
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...Can innovation solve the economic crisis? Loh Hu 2/18/2013 In this paper, I examine how the theory of technological innovation waves could contribute to solving the ongoing economic crisis. Primarily, my stance remains that innovation in itself is insufficient to solve the economic crisis unless there exists a matching techno-economic paradigm where national, supranational and global efforts are coordinated for a full deployment of technological revolution. Can innovation solve the economic crisis? Background There has been a wide international debate on the causes and possible solutions to the economic crisis that emerged in 2007 – 2008 (Ranga and Etzkowitz 2012). The economic crisis sweeps across the global financial system rapidly and furiously as markets are globally integrated (Gore 2010). Hence, the responses to the global economic crisis are not only enclosed within a nation’s or a coalition government’s approach. Rather, a global coordinated response is warranted as well. Economic stimulus packages addressing short-term and long-term problems have been adopted in most countries as well as the European Commission (Ranga and Etzkowitz 2012). Internationally, the United States of America and European Union have recently been discussing on a free-trade agreement to remove trading barriers between the two important economic powers and boost the economies (BBC News Business 2013). Globally, the G-20 group of major economies have considered proposals on international...
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...GROW SOCIAL INNOVATION DANGER AND OPPORTUNITY CRISIS AND THE NEW SOCIAL ECONOMY Robin Murray 2 TITLE ACKNOWLEDGEMENTS This essay was written while the author was a Visiting Fellow at NESTA and forms part of a series of publications on methods of social innovation led by the Young Foundation with the support of NESTA. I would like to thank NESTA for their support, and in particular Dr Michael Harris, as well as my colleagues at the Young Foundation, Julie Caulier-Grice and Geoff Mulgan, all of whom have given valuable comments on the text. Published September 2009 CONTENTS 1 CONTENTS 1. The argument 2 5 9 23 39 52 54 55 2. The context of crisis 3. The emerging economic landscape 4. Can the new social economy respond? 5. Social innovation and the crisis of policy Bibliography Weblinks Endnotes 2 DANGER AND OPPORTUNITY CRISIS AND THE NEW SOCIAL ECONOMY 1 THE ARGUMENT The rise of the new social economy This pamphlet argues that the early years of the 21st century are witnessing the emergence of a new kind of economy that has profound implications for the future of public services as well as for the daily life of citizens. This emerging economy can be seen in many fields, including the environment, care, education, welfare, food and energy. It combines some old elements and many new ones. I describe it as a ‘social economy’ because it melds features which are very different from economies based on...
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...differences between GE’s traditional innovation and reverse innovation? GE’s, as most of MNE’s, used to innovate in rich countries and after sold those in emerging country; this the traditional way of innovation. However, they began a new strategy called reverse innovation. It is just the opposite. It is about innovating in the emerging country and then bringing those to the rest of the world, richer. The base is still the same as a traditional innovation, they create something new to be the first and win the market, which may doesn’t exist yet. But the reverse innovations are first adapted to the needs of the emerging country like China and India. The greatest difference is to be low price. When the product is well launched they bring it to the rich country and create a new market with low-cost innovative goods, which doesn’t exist in the western country. Thanks to the rapid development of populous countries like China and India and the slowing growth of wealthy nations, reverse innovation has become a strategic priority. 2/ Why is GE’s interested in reverse innovation? Because of their financial situation and their brutal recession, GE’s needed to find a new strategy to develop their products. Indeed the market of the rich country is saturated by competitors so it is more and more complicated to enter the market. At contrary the possibilities in the emerging country doesn’t stop to growth. That is why GE’s decided to invest in the reverse innovation. The portable ultrasound became...
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...Innovation and Change | The role of governments in promoting innovation | | | | Gitanjali Khadagade- c7094037 | 5/14/2013 | | Table of Contents 1. Abstract ........................................................................................................3 2. Introduction to innovation ....................................................................3 3. Benefits of innovation to businesses ..................................................5 4. Why should government support innovation? ..............................6 5. National Innovation Systems ................................................................8 6.1. Role of the Government ...............................................................9 6.2. Innovation Policies .....................................................................10 6.3. Aim of Innovation Policies .......................................................10 6.4.1. National Innovation System of Europe ..........................10 6.4.2. Government of UL ..................................................................11 6.4.3. Government of India .............................................................11 6.4.4. Government of Finland .........................................................12 6.4.5. Government of China .............................................................13 6. Observations and Conclusions ..........
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...arguments as if the approach of industrial policy has actually been successful in the process of economy transformation of developing countries. This section mainly focuses on an innovation-technology driven of industrial policy, which might be helpful in promoting skill upgrading, improving industrial growth and producing high quality exported products. Hence, innovation and technology are absolutely important for industrial policy and seen as...
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...Is technological innovation the main source of all economic development and change? How might differing research and development systems influence the performance of major nations? Introduction Technological innovation has come to be regarded as a central factor upon which success is contingent (Dodgson and Bessant, 1996: 3; Schumpeter, 1943: 83). Not only has it been considered a promise for generating competitive advantage but it has also been prescribed as a remedy for a broad range of managerial problems such as intense competition, globalised marketplace and technology fusion (Eris & Saatcioglu, 2004). Since the middle of the 20th century many theorists have explored the issue of technological innovation and how it influences performance on the national, industry and firm level. This report will firstly, compare the R&D systems of the USA, UK, Germany, Japan and China and then analyse the automobile and semiconductor industries in relation to these systems to show that technological innovation is not the main source of economic development. Technological innovation Various definitions of technological innovation have been devised as part of existing theories. In addition, technology and innovation are often used interchangeably. Throughout this report, however, technological innovation will be regarded as the usage and knowledge of tools, techniques, crafts or methods in terms of new products and processes (Porter, 1990; Nelson, 1993). Further, a distinction...
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