Relevance of Innovation in Economic Growth

Innovation has to be recognized as a priority of corporate strategy and business missions. It is an established fact that the innovation brings about better results and helps companies to adapt external environmental changes. Many companies across the world could have fought against the recession, because they were consistently innovative. The senior executives ofIndian corporate world recognise innovation as their main tool to gain strategic and competitive advantage. Innovation generates economic value, new jobs in the economy and culture of entrepreneurship. By virtue of its relationship with competitiveness, Innovation emerges as a factor in promoting economic growth. The results of certain surveys have been discussed appropriately to establish a strong case of Innovation. It is, therefore, the objective of this paper to highlight certain pertinent issues of innovation and to further establish that innovation and economic growth are closely related.