Innovation can be a major competitive advantage for any developed economy. That is the same in business.
However, achieving a sustainable rate of innovation isn’t necessarily a straightforward exercise. The reality is that innovation is a complex and difficult outcome to measure, and there are many different variables that factor into.
Research and development (R&D) expenditure is certainly one of these factors – and while it doesn’t always directly correlate with innovation outcomes, it does represent time, capital, and effort being put into researching and designing the products of the future.
The above infographic from HowMuch.net compares R&D numbers for nearly every country in the world. Put together the numbers for the U.S. ($476.5 billion) and China ($370.6 billion), and it amounts to 47.0% of total global R&D expenditures. Add in Japan and Germany, and the total goes to 62.5%.
At national level, Malaysia could have done better if not for fund mismanagement, flip-flop policies and her priority of focusing one race instead of developing all the talents as a whole.
At Pasti Nyala, we could be more involved more in R&D as well. The key is time. Unfortunately, we are more preoccupied with firefighting and lack of commitment from some staffs. If we can commit more and improve our level of productivity, we could invest some time in putting a more serious effort in our Innovation Lab and create some awesome products.
Innovation is one of the key to leap forward. Without this concern, we will forever be at the bottom of the food chain.
1. Innovation in the Workplace
2. Creating Innovative Solution to a Problem