Recognizing the value of our innovation-related assets is where the ‘smart money’ should go. To gain growth and to improve productivity is through innovation. We need to translate knowledge into new values.
When you pause and consider the make-up of Innovation Capital you realize it makes such an economic contribution and in a report from McKinsey & Co, they have set about identifying this to produce the above summary visual. They surveyed 16 countries to understand the real value of this Innovation Capital.
In the report from McKinsey and Co, called “Innovation matters: Reviving the growth engine” and first presented at the G8 leaders Innovation Conference, in London on 14 June 2013, the report quantifies the importance of innovation in driving productivity growth and sets out the actions that governments and societies can take to build “Innovation Capital.”
These numbers are big and still don’t fully capture everything associated with innovation as much remains ‘hidden’ or ‘attached’ or 'accounted for' in other associated activities as well.
In this report they considered the broader aspects of Innovation Capital capturing software, design, market research, training and new business processes as well as spending by governments and through tertiary education in science, technology, engineering and mathematics (STEM) subjects.
My questions here in this community: Are you surprised by these numbers, think the approach taken has 'going forward' value and does this shift the capital debate?