The paper 'Creativity and Innovation in Reviving UK’ s Economy' is a wonderful example of a Macro and Microeconomics Case Study. 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 the 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 processes and thus, creating new markets as an image for themselves.
In fact, it is expected that improvements in the innovation ecosystem will result to high economic benefits for both the domestic growth and export 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 the integration of current institutions and redirection of limited resources should be focused on a clear priority for the economy as a whole.
In essence, this paper examines the roles of 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 prioritized 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 the UK can realize the objective of improving the economy as a whole (Leach, 2012). Recently, the number of job positions that require one to possess a 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 an increase in employment and added value due to improved knowledge and technology-focused jobs, investments made in knowledge-based assets as well as a 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 the knowledge-intensive and technologically advanced sector increased from 50 to 150 million in the period between 1970 and 2005 (Brinkley, 2012). In the UK, a 45% increase in the workers has been noted up from 24% in 1970.
In essence, most if not all sectors in the 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, the 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 innovative and creative sectors.
Brinkley, I. 2012. Innovation, creativity and entrepreneurship in 2020, A Work Foundation Statement, 1-27.
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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.