You are here: Home Knowledge Base Promoting Innovation to Achieve Inclusive Growth
Symposium 2015

Promoting Innovation to Achieve Inclusive Growth

The Challenge

“Inclusive Growth” refers to sustained economic growth while at the same time improving equal access to opportunities among (groups of) individuals and reducing income disparities (ADB 2011). It aims to provide different groups of a society with equal opportunities to participate in economic development processes, thus enhancing the living standards and promoting mobility across different social groups. A key driver of future development in the world is “innovation”.

Innovation drives long-term economic growth, creates new jobs and potentially raises productivity growth to support an upward development of wages over time. Innovation is multifaceted and can be carried out in various forms e.g. product and service innovation, business model innovation, organizational innovation and institutional innovation. Impacts of innovation on economic growth can be direct, indirect or be realized via spillover effects. However, how innovation-driven prosperity can encourage inclusive growth is still unclear and needs to be clarified in more detail.

  • Can innovation support inclusive growth?
  • How could innovation be incentivized to increase prosperity and simultaneously better consider issues like income disparities and unequal access to opportunity?
  • What kinds of innovation activities are expected to play a key role in this regard?
  • Would it be government’s institutional and policy innovation or would it be innovation activities of firms such as organizational innovation?
  • How could government’s institutional innovation strengthen innovation engagement of firms to power economic growth with social inclusion?
  • How could public-private-cooperation work for innovation-based inclusive growth?


This session is organized by the Industrial Technology Research Institute. Please check out the tabs below for additional facts and information.

    Solutions

    Solution
    Symposium 2015

    More Private-Public Cooperation for All Levels of Education

    More Private-Public Cooperation for All Levels of Education

    More Private-Public Cooperation for All Levels of Education

    Solution
    Symposium 2015

    The Role of Technology for Sustainable, Equitable Growth

    The Role of Technology for Sustainable, Equitable Growth

    The Role of Technology for Sustainable, Equitable Growth

    Solution
    Symposium 2015

    Make Inclusive Business Profitable for Companies and Acceptable to Low-Income Consumers and Producers

    Make Inclusive Business Profitable for Companies and Acceptable to Low-Income Consumers and Producers

    Make Inclusive Business Profitable for Companies and Acceptable to Low-Income Consumers and Producers

    Solution
    Symposium 2015

    Toward Inclusive Growth: Opportunities and Outcome Distributions

    Toward Inclusive Growth: Opportunities and Outcome Distributions

    Toward Inclusive Growth: Opportunities and Outcome Distributions

    Background Paper

    Background Paper
    Symposium 2015

    Promoting Innovation to Achieve Inclusive Growth

    Polity, Academia, Business, Civil Society

    Virtual Library

    Virtual Library File
    Symposium 2015

    Inclusive Growth toward a Harmonious Society in the People's Republic of China: Policy Implications

    Over the past 20 years the economies of many Asian developing countries have been growing rapidly. The People’s Republic of China (PRC) is one of the most prominent examples realizing such a strong ...

    Over the past 20 years the economies of many Asian developing countries have been growing rapidly. The People’s Republic of China (PRC) is one of the most prominent examples realizing such a strong economic growth. The strong economic growth was, however, accompanied with an increasing income and non-income inequality among individuals. Inequality raises the political and social tensions of each country and it challenges the future perspective of sustainable growth of developing countries in Asia. This paper takes PRC as an example and discusses the development and the implications of PRC’s policy toward inclusive growth, including creating and ensuring equal access to economic opportunities.

    Virtual Library File
    Symposium 2015

    Inclusive Growth toward a Prosperous Asia: Policy Implications

    This paper emphasizes two strategic points which are of high relevance for countries implementing policies to strive for inclusive growth. To strive for inclusive growth, it is essential to ensure equ ...

    This paper emphasizes two strategic points which are of high relevance for countries implementing policies to strive for inclusive growth. To strive for inclusive growth, it is essential to ensure equal access among individuals to (job) opportunities; and in order to create/maintain job opportunities, realizing a high economic growth is one of the key prerequisites. While the private sector plays a key role in driving economic growth in many countries, governments can support the economic development – particularly in a more inclusive way – by providing/developing a business- and investment-friendly environment to get more individuals and social groups from different social backgrounds involved. For example, governments may invest more in education and healthcare system to, on the one hand, help develop an abundant reservoir of human resources for economic growth and, on the other hand, improve individuals’ conditions of accessing job opportunities.

    Virtual Library File
    Symposium 2015

    Inclusive Growth in Nepal

    Strategies for inclusive growth need to be the combination of traditional policies to foster economic growth and inclusive policies to support societal inclusiveness; the author uses Nepal as an examp ...

    Strategies for inclusive growth need to be the combination of traditional policies to foster economic growth and inclusive policies to support societal inclusiveness; the author uses Nepal as an example.

    Governments’ engagement in developing education and training programs can be both growth enhancing and inclusive. Primary education and skill training programs need to particularly address the needs of individuals with disadvantaged backgrounds. Taking Nepal as an example, it is important to identify measures to motivate in particular Madhesi Dalit children to stay in schools, because this group is still characterized with an extremely low literacy rate (lower than10%). Providing particularly the poor adequate access to low-priced health services of good quality can stimulate a more inclusive economic development as well. Medical crises can be existence-threatening for most poor people in Nepal. To help them overcome the medical challenges, ensuring their integration into a reliable health care system with adequate services and medical treatment to low prices is crucial. Investments in education and health care system require funding. Governments of developing countries cannot rely on donation only for these purposes. It is also important to establish a well-functioning fiscal system and a good broad-based domestic tax system to support such investments. This paper discusses this and other policy implications in details.

    Virtual Library File
    Symposium 2015

    Designing Technology for Inclusive Growth

    This article addresses an overlooked but under-discussed feature of information and communication technology (ICT) for development: the technology itself. ICTs have large potential to support a more i ...

    This article addresses an overlooked but under-discussed feature of information and communication technology (ICT) for development: the technology itself. ICTs have large potential to support a more inclusive economic development. The under-discussion of such a potential impedes its utilization for fostering inclusive growth. In order to stimulate ICT development to be more friendly to support economic growth of particularly developing countries, it is crucial to make it clear how both social and commercial benefits can be achieved by better considering developing countries in the ICT revolution. In other words, the private sector needs to be motivated to develop commercial ICTs which specifically address the needs and limitations in the developing world, in compliance of the pursuit of inclusive growth.

    Virtual Library File
    Symposium 2015

    Innovation and Inclusive Development: A Discussion of the Main Policy Issues

    This report discusses the role of innovation for inequalities in income and opportunities and proposes some policy suggestions in this regard. Innovation is expected to stimulate the economic developm ...

    This report discusses the role of innovation for inequalities in income and opportunities and proposes some policy suggestions in this regard. Innovation is expected to stimulate the economic development but it is not usually beneficial for improving the living standard of lower income groups. It even potentially expands the income gap between the rich and the poor. Appropriate policies are needed to support an innovation-based economic growth benefiting individuals from different social backgrounds. For example, policies may encourage a better application of technologies in agriculture and fisheries, healthcare, education and mobile banking that is expected to help integrate the lower income group into economic activities. It may be even more effectively, if the poor can be motivated to participate in developing grassroots innovation which can best consider their specific needs.

    Virtual Library File
    Symposium 2015

    Innovation, income inequality, and social mobility

    This article addresses the dual role of innovation for raising the top income inequality but also for improving social mobility. On the one hand, new technological innovation increases top income ineq ...

    This article addresses the dual role of innovation for raising the top income inequality but also for improving social mobility. On the one hand, new technological innovation increases top income inequality by allowing the innovator to increase his market competitiveness. And this allows the entrepreneur to reduce his demand for labor. Both contribute to increasing the entrepreneur’s share of income. In contrast, the analysis does not show that the overall income inequality (measured by Gini Index) is statistically significantly correlated with innovation. On the other hand, innovation, particularly those leading to creative destruction, enables new innovators to replace incumbent stakeholders, thus fostering social mobility. Such positive effects of innovation on social mobility cannot be really expected if governments focus on policies that foster innovation of incumbent stakeholders only and at the same time hinder the entrance of new innovators. Instead, inclusive growth may more possibly be encouraged by a policy package consisting of policies that foster innovation (e.g. tax policies) as well as adequate competition and entry policies.