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Symposium 2015

Virtual Library File - Innovation and Inclusive Development: A Discussion of the Main Policy Issues

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 ...

“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”.

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.