Creativity and Innovation in Reviving UKs Economy - Case Study Example

THE ROLE OF ENTERPRISE CULTURE, CREATIVITY AND INNOVATION IN REVIVING UK’S ECONOMY By Student’s Name Code + Course Name Professor’s Name University Cite, State Date The Role of Enterprise Culture, Creativity and Innovation in Reviving UK’s Economy Introduction By the year 2020, the United Kingdom should be enjoying the benefits of a balanced and sustainable economy. For a substantial period until the 2007 financial, the UK crisis has continued to depend solely on such aspects as the financial sector, property and infrastructure to improve its current economy and employment growth (Leach, 2012). The remaining section of employment is offered through its public sector whose tax revenues decreased by the aforementioned bubble economy. Today, as the nation comes out of the severe economic crisis, it has been made clear that the economy must diversify if not change its operation for its own growth and sustenance in the future. There is a need for UK to develop an innovation-based ecosystem that will catapult the country’s growth in all sectors (Leach, 2012). In this period, successful businesses will only be those that are able to innovate products and processess and thus, creating new markets as image for themselves. In fact, it is expected that improvements in innovation ecosystem will result to high economic benefits for both the domestic growth and exports businesses (Leach, 2012). UK-based firms enjoy the highest rates of interest sales in the OECD while in 2007; the nation was one of the core exporters of ICT related services. The current challenge for this nation is to focus its development strategy towards efficient investment and innovation with the minimum levels of public money available (Leach, 2012). Effective solutions for these challenges should be less costly while integration of current institutions and redirection of limited resources should be focused towards a clear priority for the economy as a whole. In essence, this paper examines the roles enterprise culture, creativity and innovation will play in reviving UK’s current economy. The Role of Knowledge-Based/Creative Industry It is important to note that while most of the limited public money should be utilized to fund prioritised areas, there is a need for the creation of some new public based agencies. These agencies will focus on improving private sector long term capital prowess, enhance growth in all market-related activities and also, catapult public service forms of innovation. The need for knowledge economy is perceived to be the only way UK can realise the objective of improving the economy as a whole (Leach, 2012). Recently, the number of job positions that require one to possess degree or other professional related skills has greatly increased. Multinational companies, which have continued to grow and succeed, are those that have adopted smart processes and added value to their products (Oliver, 2014). Knowledge-intensive sectors are mostly concentrated within information and communication-based technologies. The UK economy has witnessed increase in employment and added value due to improved knowledge and technology-focused jobs, investments made in knowledge based assets as well as talented and educated workforce (Brinkley, 2012). Notwithstanding, the fundamental driver of the existing increased demand for added value services and products lies in wealthier and overly-diversified models of consumers. Statistically, the number of employees in knowledge intensive and technologically advanced sector increased from 50 to 150 million in the period between 1970 and 2005 (Brinkley, 2012). In UK, a 45% increase of the workers has been noted up from 24% in 1970. In essence, most of not all sectors in UK have invested substantially in knowledge based intangibles like designs, software and R&D related activities. Research forecast indicates that by the end of 2020, UK’s economy will be operating on jobs emanating from such categories as managerial, professional as well as technical sectors (Brinkley, 2012). Thus, there is a substantial need to develop the innovative and creativity sectors. Following this line of reasoning, the 2020 knowledge economy so much desired in Britain should focus on areas that will facilitate growth and also create work positions. It is crucial to note that the knowledge based industries facilitated recoveries in both the 1980 and 1990 recession periods. For instance, in the period between 1991 and 1998, the private sector of UK economy focused specifically on knowledge services provision generated at least 1 million work positions with about half emanating from high technological industries and other business-based services (Brinkley, 2012). Therefore, there is a proof that this sector can also play an important role in reviving the economy from the recently witnessed recession. The creative-based industry does not conform to traditional industrial limitations thus; there is less to worry about other unifying group based activities (Oliver, 2014). There is a prospect that the UK knowledge intensive will improve innovation, exports as well as job creation in such areas as the creative and cultural industry, which will benefit from improved copyright laws as well as a high tech added network and intermediary service sector (Brinkley, 2012). The Role of 2020 Innovation System It is expected that by the start of the year 2020, the UK will enjoy a rather developed and sophisticated platform for innovation systems, which solely relies on current solid frameworks. The foundation is expected to be created through integration of works of BIS as well as other notable bodies like NESTA (Brinkley, 2012). This system is expected to be fairly integrated in both the public and private sector and also be solidified within the creative and cultural sectors. It will emphasize greatly on formulation of perfect guidelines and adoption of effective regulation, planning and other crucial non-fiscal frameworks (Oliver, 2014). Equally important, significant efforts of the innovation system will focus on four growth based activities that include; manu-services, low carbon emissions, cultural and creative sectors as well as the high tech and business industries. This fair integration of the aspects depicts the emphasis focused on the aforementioned anchors of knowledge-based or rather creative industry. Today, the manu-service industry invests double the amount of assets put up in manufacturing industries, automobile and other machines (Brinkley, 2012). This, in fact, depicts a higher ratio as compared to the underlying assets investments within the service sector. The proposed 2020 innovation system will allow a faster adoption of general purpose technologies. The program is quite related with the technologically viable commodities and processess like the lean production. GPTs have the capacity to alter an organisation’s operations as well as the entire framework of the economy and not only certain industries (Brinkley, 2012). Increased efforts being made on adoption GPTs lies in the fact that innovation is the core pillar of stocks of scientific and technological based knowledge while stock knowledge, is increasingly being adopted by numerous economies across the globe (Developments In Individual OECD Countries, 2009). Notably, inventions made in certain areas can occur faster after a breakthrough just especially when rediscoveries of process are halted due to limited time and other further discovery. Subsequently, it is expected that the innovation system will assist economy recovery due to a substantial discovery of series of engineering based limitations. Some of the engineering areas that will benefit include; discovery that will be made in nano-technology, fusion power and carbon sequestration, medicine as well as in cyberspace security (Brinkley, 2012). This will enable technologies that will cut across traditional research barricades due to integrated innovations in chemical and biological-focused applications in crucial sectors like health care. The Technology Strategy Board as well as other notable public bodies in Britain continues to steer innovation centres in most of institutions of higher learning and companies that perceive the importance of exploiting new and untapped technologies (Developments In Individual OECD Countries, 2009). Most importantly, it is a requirement for the innovation system to possess the capacity of responding to aspects of innovation within the services sectors. This is due to the fact that there is an ever-changing model for consumer tastes and preferences, which acts as the fundamental drivers of a knowledge-based economy (Developments In Individual OECD Countries, 2009). For this case, innovation related to products, service and technology should be allowed a single generation point. Role of Enterprise Culture In the road to reviving the UK 2020 economy, productive entrepreneurship will be identified and adopted. It will be steered with intensive levels of competition that allowed growth through aspects of innovation as opposed through mergers and acquisitions of companies (Oliver, 2014). There will be a need for developing workable institutional structures necessary for provision of a never-ending capital resource for organisations penetrating their respective operations into newer sectors like regulated carbon (Brinkley, 2012). This should be aimed at ensuring a better utilization of current technologies or for transformation of the creative and cultural values into a commercial viable haven. The fundamental way of ensuring long-term success of an innovation system is through formulation of competition policies. It thus goes without saying that possible mergers and acquisitions would hardly ensure a successful UK enterprise culture (Developments In Individual OECD Countries, 2009). In consequence, competition policies need stronger public interest that distinguishes substantial benefits arises from society allowing operations of competitive markets (Brinkley, 2012). It also arises whenever there is a secured and guaranteed level of growth and value thus, providing a capacity to create newer and perfect products and services in comparison to rivals at hand. Considering the fact that competition policies enhance positive enterprise culture, it must also be active in conducting trade-offs (Oliver, 2014). Markedly, calculated collaboration amongst different parent enterprises can be confused as being anti-competitive but in real sense it will allow innovation for UK firms. Actually, both small and large companies can greatly benefit from intensive imaginative utilization of public procurement processess in order to steer innovation in the long run. UK economy is able to utilize open innovation for enterprise cultures as a way of promoting integration of private and public based entrepreneurship (Oliver, 2014). The current UK Design Council has played a greater role in developing ways through which areas like NHS depict perfect designs in order to offer quality services and at lower costs hence opening up market platforms for innovative UK based enterprises. Britain enterprise culture especially in creation and support of SMEs reflect a high growth and it is positioned second after the United States of America. The sector has for the past few decades provided employment for most of the people especially those related to knowledge based activities. For effective and efficient correlation of a perfect UK enterprise culture that will improve, policies should be created to achieve two results (Oliver, 2014). One rests with making sure that the innovative and developed enterprises have access to capital necessary and in fair terms. Particularly, much attention should be directed towards enterprises that perceive traditional venture capitals as being expensive and the present financial institutions being highly inaccessible to meet their demands (Oliver, 2014). Secondly, new and creative enterprises as well as those creating new innovative services in relation to knowledge economy also need access to capital. Conclusion The discussion above has indicated that the enterprise culture, creativity and innovation systems continue to play a greater role in ensuring UK 2020 economy recovery process. In all these aspects, the discussion has identified that the innovation system should be fairly integrated within the other factors to ensure that the economic recovery is attained in a timely manner. Some of the aspects necessary for driving the recovery process include; investments in low carbon, knowledge based economy, creative and cultural activities as well as highly tech and business based services. In essence, during this recovery process UK will enjoy a greater number of higher education institutions. All of these productive facets all expected to complement and support existing frameworks rather than compete for the already scarce resources. References Brinkley, I. 2012. Innovation, creativity and entrepreneurship in 2020, A Work Foundation Statement, 1-27. 'DEVELOPMENTS IN INDIVIDUAL OECD COUNTRIES' 2009, OECD Economic Outlook, 2, 86, pp. 119-228. Dale, S 2012, 'UK economy showing some signs of recovery, says BoE governor', Money Marketing, p. 9. Leach, G 2012, 'Radical route to recovery', Director, p. 16. Oliver, M 2014, 'the UK Economy Is Recovering, the Future Is Safe, or Is It?’ Builders Merchants Journal, pp. 20-21. Read More