Concepts of Creativity and Innovation - Coursework Example

Name : xxxxxxxxxxx Institution : xxxxxxxxxxx Title : Tutor : xxxxxxxxxxx Course : xxxxxxxxxxx @2012 Table of Contents Table of Contents 2 1.0 Introduction 3 1.1 Objectives 4 2.0 Literature Review 4 2.1 Creative and Innovative Opportunities within the UAE Education Sector 4 2.2 Creative and Innovative Opportunities in the UAE Financial Sector 7 2.3 The Use of ICT to develop a culture of creativity and innovation 8 2.4 Creative and Innovative Opportunities within the UAE Industrial Sector 9 3.0 Data Analysis 11 4.0 Case Study: The Dubai Ladies Club 11 5.0 Benchmarking as strategy of enhancing innovation and creativity in UAE 12 6.0 Research and Development (R& D) in Enhancing Innovation 13 7.0 Conclusion and Recommendations 15 References 17 1.0 Introduction The concepts of creativity and innovation were traditionally associated to different spheres of social life. Creativity was originally linked to activities within the artistic world, while innovation was associated to technological advances or scientific discoveries. This situation dramatically changed in the sense that creativity is today twinned with innovation. In contemporary society, innovation in is now perceived as the amalgamation of creativity and invention which results to the generation of economic and social value. Innovation is basically a fundamental driver for global competitiveness, economic growth and long-term productivity. In reality, the level of creativity and innovation in a nation can be linked to its GDP. Apart for enhancing economic growth, innovation and creativity also influence good governance and the integration of a nation into the global knowledge economy. According to Mann and Chan, (2011) creativity is today closely associated to innovation and also to the economy due to the fact that over the years, the idea of a creative economy has become part of the public policy in many nations of the world. In addition, the decline in the industrial economy has spearheaded the prominence of the ‘’ Knowledge economy and more recently the creative class. In general, the new concentration in creativity as partner to innovation is basically not only limited within the creative industries but rather it applicable in all sectors of the economy and the society. In essence, creativity and innovation are increasingly becoming more significant both to individuals, to publicly owned organizations and the private sector. This particular paper seeks to evaluate creative and innovative opportunities in the United Arabs Emirates. The scope of the analysis will be grounded on a review of literature on creative and Innovative Opportunities in the UAE. In addition, the paper will provide a documentary analysis of creativity and innovation within companies in the UAE. 1.1 Objectives To identify the various creative and innovative Opportunities within various sectors in the UAE To find out the drivers of creative and innovative opportunities in UAE To investigate the impacts of creativity and innovation on the UAE economy and society To provide recommendations on how the UAE can create a culture of creativity and innovation 2.0 Literature Review Maxwell, (2009) highlights that UAE as one the oil-rich nations in the globe has in the recent years illustrated the need of transforming its economy from an oil dependency economy to an economy that is able to rely on innovative and creative approaches in order to create a sustainable economy. Maxwell, (2009) further highlights that such attempts of innovation and creativity have been adopted in various sectors of the United Arab Emirates’ economy. 2.1 Creative and Innovative Opportunities within the UAE Education Sector The education sector is a dominant sector that has spearheaded creativity and innovation opportunities within the EAU region. Although various scholars such as Maxwell (2009) have argued that the UAE region greatly faces the challenge of creative innovative infrastructure that is based on science and technology, what is evident is that the education system has progressively been working towards expanding education opportunities in science and technology. Al- Abed and Hellyer (2001) highlight that when critically examining the opportunities provided by the education sector in UAE, it can be argued that radical changes have been implement. This is because a good number of higher education institutions have been formulated with the objective of giving opportunities to people to be more creative and also innovative. According to Al- Abed and Hellyer (2001) education in the UAE is not only about the production and management of oil, but rather education in the region has become more multi- disciplinary. For instance in the recent years projects such as the Internet City project have been initiated in Dubai with the objective of increasing the science and technology research potentiality for young educated citizens . Al- Abed and Hellyer (2001) also reveals that another project has been initiated in Abu Dhabi referred to as CERT (Center for Excellence in Research and technology). The project is aimed at providing high technology training on the use of technology in innovation. Also in the recent years UAE has witnessed the expansion of many private institutions that provide a variety of tertiary level educational opportunities (Al- Abed & Hellyer, 2001). For example in Abu Dhabi, the Al Hosn University was opened up 2005 as a privately owned institution supported by the Abu Dhabi Holding Company. Al- Abed and Hellyer (2001) asserts that the university provides unique and new sets of disciplines in business, arts , social sciences and Engineering, which are for the first time being introduced within the UAE region. Manar et al (2012) further reveal that education in the UAE has also been progressively transformed in order to advance the culture of creativity and innovation. Manar et al (2012) acknowledge the fact that in the previous year’s education was mainly geared towards directing young people to employment opportunities. Although, studies reveal that 70% of high school students in the UAE have the aspiration to become entrepreneurs, the public education system does not actually offer the student with innovative and creative learning content. Nevertheless, in the recent years due to the rising unemployment rates essentially among young people and women, the government and even private stakeholders in education have recognized the need for transforming education in order to provide more innovative and creative opportunities for young people. Fostering entrepreneurship has therefore been considered as a significant avenue for enhancing creativity and innovation. As indicated by the Abu Dhabi’s Vision 2030 and also by the Dubai strategic plan 2015, entrepreneurship is a key driver to innovation which should be cultivated among young people (Manar et al, 2012). Various initiatives have therefore been implemented in order to encourage entrepreneurship training among young people. For example the Injaz and Khalifa fund is one of the leading entrepreneurship institutions in the UAE that offers training on consulting services, financial and marketing solutions and opportunities were learners can learn by doing. The institution mainly focuses on teaching entrepreneurship to the youth through the use of IT applications. Manar et al (2012) highlight that; this particular education initiative has encouraged creativity and innovation among many young people (Manar et al, 2012). A study conducted by the Global entrepreneurship monitor (2011) revealed that UEA recorded the highest rates of young business initiatives and the second highest rate of business start-ups as compared to other countries within similar economic development stage. According to Global entrepreneurship monitor (2011) the findings give an indication that entrepreneurship is a promising arena that has enhanced creativity and innovation essentially among young people. 2.2 Creative and Innovative Opportunities in the UAE Financial Sector The financial sector is another creative and innovative arena in UAE. According to the Oxford Business Group (2007) the UEA finance sector has over the years applied innovative and creative approaches which have greatly improved the financial sector. According to a research conducted by the Abu Dhabi National bank, the assets generated by Islamic banks, account for 15% of the total assets in the UEA. The Islamic banking sector has been growing at a very rapid rate than other convectional sectors. The research by the Abu Dhabi National bank reveals that the rapid growth can be associated to the increased adoption of creative and innovative approaches within the banking sector. For instance ADIB which is Abu Dhabi’s major Islamic bank has aggressively adopted the approach of increasing it network branches by 30%.This involves expanding its branches not only in various regions of the UAE but also within regions such as North Africa. The bank also adopted other innovative approaches such as the introduction of Sharia compliant credit cards and the strengthening of retail and corporate banking. This particular initiative has been productive in increasing the banks profits and also attracting a larger customer base. The application of total quality management in the banking industry has also increased innovation and creativity. According to Rice, (2001) total quality management within the banking sector entails the innovation of financial product solutions that are in line with Islamic principle. Rice, (2001) further highlights that the existence of the Sharia advisory board has played a significant role in UAE banking system. This is because the Sharia boards have experts who work with the management teams in bank. The basic role of the experts is to advice banks on suitable banking innovations that are acceptable within the Islamic financial market. For instance Rice, (2001) reveals that there has been increase in mortgage products that are structured according Islamic principles. The mortgages have attracted a large number of clients for the banking sector. 2.3 The Use of ICT to develop a culture of creativity and innovation The World Economic Forum (2010) highlights the UAE continues to show an increased development in ICT infrastructure. Nevertheless, although the UAE has the most advanced ICT infrastructure in the Arabic world, accessing ICT has not exactly been a major area of concern for UAE. This is due to various cultural and religious boundaries that have long existed in the UEA as an Islamic country. In addition the use of ICT has been limited by the scarcity of Arabic content and also the inefficacy in terms of legislations that promote the promotion of the use of ICT applications such as the internet (Mourtada and Salem, 2011). For instance restrictions have been implemented on internet use in the UAE whereby certain ICT tools and application such as VoIP are blocked. Mourtada and Salem, (2011) however highlights that in the recent years the use of ICT for innovation and creativity purposes has rapidly increased, essentially among the youths. A case in point was reported by the BBC, 2010 whereby the youth of Dubai have taken advantage of consumer technology in order to try and invent new applications that can serve consumers. One of the creative ideas is that of a memory stick that can be paired to a computer in order to stream media files in the PC as if they were as a stick. This new invention implies that a person can play a movie wirelessly using media devices such as a PlayStation without having to copy any sort of files. The new invention was created by Ahmad Zahran a young Dubai resident who also founded his own company known as Infinitec (BBC, 2010). Such initiatives indicate the transformation that has taken place in the UAE whereby young entrepreneurs can come up with innovative ideas that are linked to ICT. 2.4 Creative and Innovative Opportunities within the UAE Industrial Sector As one of the leading oil exporters in the globe, the oil production industry is a significant part of the UAE economy. Consequently the key industrial players within the UAE oil industry have been working towards increasing the oil production capacity (Butt, 2012). According to a BP statistical Review of World Energy (2011), oil production in the region was approximately 2.6 barrels a day in the year 2010. The production capacity in the year 2011 increased by 3.5%. In 2012, UAE has adopted initiatives to expand its capacity of production of crude oil to 3 million barrels each day. The fundamental vision of the UAE government is to identify new production initiatives that can boost the capacity of national rude oil production to closely 4M barrels a day by the year 2020 (Butt,2012). According to Butt, (2012), apart from the objective of increasing the oil production capacity, the UAE has in the recent years demonstrated the realization that there is need to adopt constant technologically improvements within its oil industry in order to keep up with the changes that have taken place in the entire world. These changes include changes in the demand for oil and also the need to comply with environmental regulations in the production of oil. For instance, in order to deal with the issue of an increase in demand of oil across the globe, various innovative approaches have been adopted. Reuters, (2012) reveals that the UAE government initiated a concession system that gives an opportunity to oil and gas producers to obtain equity shares in the production of hydrocarbons. The concession will enable oil producers to invest more on the projects which may further boost the number of barrels produced each day. Apart from the oil industry, in order to develop a more suitable economy, the UAE has also embraced the need to develop other industries through innovative and creative approaches. The Swiss Business Hub, (2012) reveals that the tourism industry is one of the top priorities of the government. The UEA government and even private sector organizations have been working towards diversifying the economy through tourism. Substantial effort has been channeled to the building infrastructure within the tourism industry. For instance accommodation for tourists in UAE is basically of very high standards, a good number of the worlds best five star hotels exist in the regions, this include Burj al –Arab in Dubai and the Emirates Palace Hotel in Abu Dhabi. In addition, various events that attract tourists have also been initiated, this include; shopping festivals, film festivals, sporting events and organizational fairs. In Abu Dhabi, plans are underway to make Abu Dhabi a cultural capital. Many iconic projects have also been innovated in the city for instance the ‘’ Guggenheim’’ museum which is still undergoing the design, furthermore many more iconic projects are yet to be initiated within the UAE. According to the Swiss Business Hub, (2012) due to the new innovations in the tourism sector, the UAE is progressively gaining prominence as an international tourist hub. After the oil and the trade industry the construction industry is the third biggest sector within the UAE economy. According to the Swiss Business Hub report, (2012) about 6, 000 companies are currently in operation. In despite of the challenges that affected the industry in 2009 and 2010 as a result of the financial crisis, the UAE construction industry is still promising based on the fact that new innovative projects have been initiated in order to facilitate the continued expansion of the industry. For instance numerous construction projects for have been initiated in Dubai and Abu Dhabi. 3.0 Data Analysis According to Rashid (2011) innovation and creativity within the UAE has been fostered by small medium enterprises. The small medium enterprises (SMEs) consist of 95% of the businesses that exist in region. The sector also employees 42% of the human resource, and contributes approximately 40% to the economy. Consequently, the government has been giving the support in terms of financing and supportive legislations to SME’s in order to foster innovation among business men and women. A significant cases study of an SME company that has emerged innovative in the UAE includes: 4.0 Case Study: The Dubai Ladies Club The Dubai ladies club which is also a small medium enterprise founded by Manal bint Mohammed , is a unique concept in the sense that it aims at providing unique services that relate to the requirements of women. For instance the Middle East Business Resource (2012) reveals that ever since the inception of the business it has provided services that appeal to many women in Dubai. The business combines varied services such as providing tranquil locations where women can relax, beautification services, spa services, corporate events, bridal showers, entertainment for women and education for women for instance breast cancer awareness. The business has continued to come up with innovative ideas that continue to attract the female market in Dubai. For instance the Middle East business resource (2012) reveals that the SME has initiated a project of developing the first Business Incubation Centre (BIC) for young entrepreneur women in the UAE. The objective of the business center is to offer an ideal working environment that seeks to develop and create small and medium business projects for young women. The aspiring entrepreneurs will experience the centre as a nurturing environment where they can initiate their own personal businesses and also get all the support they require in order to effectively grow and also manage their businesses, at a cost that is reasonable. The women will also get an opportunity to work with experts in business and also other entrepreneurs in order to visibly define the direction of growth for their businesses (Middle East business resource, 2012). The Dubai’s ladies club can therefore be described as an explicit example of how small medium enterprises within the UAE are able to foster innovation and creativity within the region. 5.0 Benchmarking as strategy of enhancing innovation and creativity in UAE Benchmarking can be described as a process that involves the identification of the best practices of other organizations in order to identify areas of performance improvement. Osama, (2009) reveals that benchmarking is one of the major approaches that have been utilized by companies in the UAE in order to initiate a culture of innovation and creativity within the organization. A prominent company or region that has frequently been used for benchmarking is Silicon Valley. Osama, (2009) highlights that in many ways, when a reference point is made concerning innovation and creativity Silicon Valley and the companies that exist in the region are basically the key benchmarking area. Silicon Valley is renowned for taking technological leadership microcomputer reinvention, ecommerce and also the use of the internet. The UAE essentially regions such as Dubai have adopted the performance indicators from Silicon Valley in order to implement a culture of innovation and creativity. In order to be like Silicon Valley, Osama, (2009) highlights that company’s in Dubai aim at focusing on creating businesses that deliver innovation. Delivering innovation is significant based on the fact that in the changing business environment, only companies that can master the art of innovation and creativity will be able to attain suitability in the long run. Companies in the UAE have also been working towards creating innovation and value. This involves starting the business in a small manner however by undertaking the process of building the business step by step, the business is able to eventually perform well. Dubai has for instance initiated companies that spearhead innovation, this include the Dubai Silicon Oasis Authority which works towards devising new business ideas through the use of ICT (Osama, 2009). 6.0 Research and Development (R& D) in Enhancing Innovation Research and development has also been utilized by companies in the UAE in order to enhance innovation and creativity. A case in point is the Dubai Silicon Oasis (DSO), which is hub for industries that deal with high tech technology. Stensgaard, (2007) highlights that the Dubai Silicon Oasis considers research and development as a key aspect in enhancing innovation and creativity. The organization launched a state of the art Research and Development laboratory that is situated on the main headquarters. The new facility which is in the initial phase has the objective of offering a wide range spectrum of solutions and services to both technological and educational institutions. The Research and Development laboratory will also serve the needs of companies that aim at undertaking research on forthcoming technologies, testing prototypes, Soft testing designs and sensitive components (Stensgaard, 2007). The Dubai Silicon Oasis is another explicit example of how companies use R&D in order to develop innovation. The process mainly entails the continuous use of technology in order to come up with new creative ideas within the business environment. 7.0 Conclusion and Recommendations After undertaking an in-depth analysis of creativity and innovation opportunities in UAE, this particular paper provides the following recommendations in order to foster the culture of innovation and creativity: From the findings of varied literature, what is evident is that the UAE suffers from the situation of poor performance when it comes to innovation. Although the paper presented case studies of companies that have implemented innovation, what is evident is that there is much more to be implemented in order to build a culture of creativity and innovation in the region. One of the aspects is nurturing creativity and innovation even within the classroom level and even at home. As Mourtada and Salem (2011) reveal the school UAE curriculum is heavily grounded on rote memorization at the expense of cultivating an environment of problem solving for learners. Consequently, it is difficult to create a culture of innovation and creativity among young people who are core of the economic development. There is therefore need to develop a learning system or curriculum that is able to expose young people to problem solving and innovation. This can be undertaken by integrating ICT tool in classrooms, providing more creative outlets for young people and also removing restriction that block the accesses to certain sites which are also useful in inculcating innovation and creativity among the youths. Also, policy makers in the UAE should acknowledge the fact that fostering and promoting entrepreneurship is a significant aspect in assisting the youth to develop viable innovations and also self employment opportunities. For instance the government and organizations should develop more ICT incubators which are known to offer guidance on entrepreneurship and also nurturing the growth of the entrepreneurs. Furthermore, government ad organizations should device ICT incubators that have Arabic content in order to give equal participation opportunities for all youths and the rest of the community. Also innovation and creativity is also greatly influenced by the existence of small medium enterprises in a country. There is therefore need for the government to provide more support to SME’s in terms of financing and also supportive legislations. In conclusion, the paper acknowledges the fact that innovation and creativity are fundamental aspects in the development of the UAE economy. References Al- Abed, I and Hellyer, P, 2001, United Arab Emirates: A New Perspective, Trident Press Ltd. Al- Abed, I and Hellyer, P, 2006, The United Arab Emirates Yearbook 2006, Trident Press Ltd. Butt, G. 2012, Oil and Gas in the UAE BBC, 2010, Dubai - a city of hi-tech contrasts, BBC News. Mann, L and Chan, J. 2011 Creativity and Innovation in Business and Beyond: Social Science Perspectives and Policy Implications, Taylor & Francis. Maxwell, I. (2009). Managing Sustainable Innovation: The Driver for Global Growth. Springer. Manar, T, Adel, K, Faterma , M,2012, .Innovation Use of IT application for Teaching Entrepreneurship to the Youth: UAE Case study ,Middle East Conference on Information Systems . Mourtada, R and Salem, F,2011, Exploring the Role of Technology in Innovation in the United Arab Emirates, Dubai School of government. Middle East business resource ,2012, Dubai Ladies Club and Dubai SME Launche 'Studio 9' Business Incubation Centre for young women entrepreneurs, Retrieved From < http://www.ameinfo.com/dubai-ladies-club-dubai-sme-launches-310816> Osama, A, 2009, Dubai 2.0 – Towards an Innovation Economy, Dinar Standard . Oxford Business Group, 2007, The Report: Abu Dhabi 2007, Oxford Business Group. Stensgaard, A, 2007, Dubai Silicon Oasis establishes first R&D Laboratory in the UAE, Company News, Dubai Silicon Oasis. Swiss Business Hub, 2012,United Arab Emirates Business Sectors, Business Network Switzerland. Reuters, 2012, UAE oil output set to hit 3m bpd by year-end, Arabian business .com. Rice, G, 2001, Integrating Quality management, creativity and innovation in Islamic Banks, Lariba Annual International conference . Rashid, B, 2011,Corprate Governance in Dubai SMEs, Dubai SME Report Read More