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Capturing innovation to create wealth

Broadcast United News Desk
Capturing innovation to create wealth

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There is a widespread belief that economic development is primarily an economic issue: economic policy choices are defined with reference to econometric and financial theories and techniques. The problem is that in so-called developing countries like ours, this is not very convincing. In fact, for decades, we have suffered from endless structural unemployment, economic growth rates that have not been sufficient to achieve inclusive development across regions and different categories of the population, nor to ensure sufficient resilience to overcome the crises that have occurred in the world. We remember the impact of the subprime crisis in 2008, the impact of the COVID-19 pandemic in 2020, the impact of the surge in cereal prices in 2022, without forgetting the recurring crises caused by oil price fluctuations. We have seen a continuous decline in growth since the uprisings of 2010-2011. But we have overlooked the fact that at the heart of the economy, there are people who do not benefit from the attention necessary to mobilize their potential.

The two main levers of development inherent in human beings are innovation, which thrives in multiple organizations and a field of activity, and the stimulation of investment in work, because without additional effort it is impossible to create additional wealth.(1).

Take businesses, for example. Of course, there are innovators in the field of information and communication technologies. Their start-ups reflect their talents and abilities, both technical and creative. There are also artists, people dedicated to the performing and musical arts. They are well supported financially and commercially and are creators of wealth. We know, for example, how much the film industry affects the economies of countries like the United States, Egypt, Turkey, etc… Unfortunately, our Tunisian filmmakers are not rewarded with the awards they receive at international film festivals for their large investments to move into the high-end market and conquer the global market. However, the originality of the issues they raise and the freedom of their expression that breaks taboos give them competitive advantages that simply need to be strengthened.

There are also those who practice artistic professions more closely related to economic production activities. They are designers, architects, advertisers, urban planners… There are also farmers who look for new ways to improve production, and artisans who innovate in models, quality, and even the design of new products that correspond to the needs of today’s consumers. Small farmers and isolated artisans practice traditional professions, with low wages and no appeal to young people. So many factors obscure the interest in creativity, which does not benefit from the necessary attention to its dissemination and improvement through the transplantation of science and technology. The large exhibitions, shows or fairs that are held regularly certainly provide support to these economic actors, but they cannot reverse this trend.

In production companies, no matter how big or small, innovation is present at several stages of the production process. Whatever it is, companies have innovative engineers and technicians because of the need to find solutions to recurring or new technical problems. There is innovation, which is DIY “doing more with less”, and innovation, which is the adoption of imported technology. Appropriation consists of an intelligent relationship with technology, leading to imagining ways to adapt to the environment, bringing new functions to traditional technological equipment, creating new processes, imagining new uses for recycled materials or deviating from their original use in order to provide consumers with usable products in a context of scarcity. It is no coincidence that the engineer Moncef Bouchrara was the first to reveal these rich results of innovation in an article entitled “The expanding scale, mechanisms and scope of industrialization” published in the journal Economy and Humanism in 1987.

In medium and large structured enterprises, technological appropriation covers a wide range, from equipment maintenance methods to patent applications, including the introduction of new technological processes on old machines, the manufacture of parts, the manufacture of tools, the manufacture of products. Machines… Innovation also involves organization, such as new processes to increase production, a record of innovation, the maintenance of continuous R&D activities, cooperation with universities and research institutes, the export of technological know-how…

According to statistics published in 2019, South Korea ranks first in the world in R&D investment (4.6% of GDP), and the private sector also makes a significant contribution to this activity, accounting for 78% of total investment.

Our innovation-based economic growth strategy can draw on the successful experiences of other countries. Take Finland, for example, a country with a population comparable to ours that has achieved an economic leap by focusing on innovation. Many people remember Nokia, which entered the global market with smartphones, but few have heard of Tekes. It is a public agency whose mission is to manage the implementation of the country’s innovation policy. Tekes initiates tenders for research projects, and public and private organizations as well as scientific research institutions can bid. This creates competition and promotes cooperation. Therefore, large companies participating in the tender must include basic research in their offers. This inevitably leads them to cooperate with universities.

Unfortunately for our country, cooperation between the research and production sectors remains very timid, if not exceptional. A national strategy focused on the knowledge economy could remedy this shortcoming.

Interests: Zgar

(1) I will renew my commitment to work in the next issue of the magazine leader.



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