What is the ‘Secret Sauce’ of Innovation?
From extensive discussions over the past two years of on-the-ground research, visiting tech hubs across the US, Asia, Europe, the Middle East and Latin America, I offer these lessons on how nations can best assure they have competitive innovation ecosystems:
Strategic planning Most of the world’s leading innovators are engaged in some form of longrange, “whole-of-government” strategic planning to get to where they are now. The United States followed this template after the Second World War, with the US government developing an aggressive tech-focused plan; that plan, however, is now eroding.
Innovative culture The best ecosystems are those that nurture a strong sense of place: People like to live and work in such ecosystems and develop a strong attachment to them. Such ecosystems also have high exposure to global flows of money, ideas and talent.
R&D “There are no miracles,” one prominent Israeli scientist told us regarding R&D. He meant that no society can be in the top tier of tech-focused innovation if it does not invest in R&D.
Tech transfer There is a difference between discovery and innovation. The former is about lab-based science, the latter about transferring scientific knowledge into practical and commercially viable technologies. Universities need to learn to promote commercially applicable research by faculty, staff and students.
Intellectual property States should recognize that strong IP protection will lead to more prosperity over the long run. The best IP rights systems involve effective management, where governments have invested in the capacity to run their IP systems well. Countries should focus on bilateral and regional agreements in the near term; global accords are a long-term challenge.
Immigration In nearly every leading case examined, immigration has been a major factor accounting for success. Immigrants need to feel welcomed if they are to stay and invest their talent over the long run.
Adapted from The Global Innovation Sweepstakes: The Quest to Win the Future