Innovation comes in many forms
In the words of Nobel Prize-winning economist Paul Krugman, “Productivity isn't everything, but in the long run it is almost everything.” And what’s the key to raising productivity? Above all, it is innovation in all its forms – the application of scientific and technological advances, the design of new products and services, improvements in management techniques, and much more.
Incentives to spur innovation
The incentives to innovate will inevitably vary from industry to industry. In energy, for example, the combination of variable tariffs and smart household technology can encourage consumers to use more off-peak power. But there are common threads. In every sector regulators and policymakers need to strike the balance that gives business sufficient motivation to invest in innovation. And drawing on behavioural insights can help companies develop ground-breaking products and services.
Team thoughts
