In order to achieve sustainable economic growth, it is important to understand the calculus of innovation. What is the calculus of innovation? The calculus of innovation can be simply described as the relationship between knowledge, innovation and productivity.
In this blog post, we will explore how the calculus of innovation drives economic growth and discuss ways that you can use it to drive growth in your own business!
What is the calculus of innovation?
In the words of scientist William Brody, "The calculus of innovation is really quite simple: knowledge drives innovation, innovation drives productivity, productivity drives economic growth."
In other words, the key to driving economic growth is through continual innovation. However, in order to innovate, businesses must first have the knowledge to do so. This is where the relationship between knowledge and innovation comes into play.
Businesses must continuously invest in research and development (R&D) in order to gain the knowledge needed to drive innovation. R&D allows businesses to stay up-to-date on new technologies and trends, which gives them the ability to create new products and services that meet customer needs.
It is important to note that not all innovation leads to productivity gains. In order for innovation to drive productivity, it must be implemented in a way that is efficient and effective. This is where the relationship between innovation and productivity comes into play.
In order to be productive, businesses must invest in process improvements and new technologies that will increase efficiency and effectiveness. For example, investing in lean manufacturing processes can help businesses eliminate waste, increase quality and decrease lead times.
Ultimately, the goal is to create a feedback loop where knowledge drives innovation, which in turn drives productivity and economic growth.
How can you use the calculus of innovation to drive growth in your business?
There are a few key things you can do to make sure that you are using the calculus of innovation to drive growth in your business:
- Invest in R&D: As we mentioned before, businesses must continuously invest in R&D in order to gain the knowledge needed to drive innovation.
- Implement process improvements: Make sure that you are investing in process improvements and new technologies that will increase efficiency and effectiveness.
- Create a culture of innovation: One of the most important things you can do is to create a culture of innovation within your organisation. This means that innovation should be autonomous - it should not rely on either the owner or the people within the organisation.
By following these steps, you can make sure that you are using the calculus of innovation to drive growth in your business!