Innovation for Economic Development

How it has reshaped the global economy

Abstract

In this paper, we discuss how innovations in information technology have transformed the global economy over the last quarter-century. We then illustrate, from an economic perspective, the manner in which new technology and subsequent innovation will reshape the workplace in the 21st century. Our study yielded three observations. First, innovation revitalizes even sluggish economies of developed countries when the innovations involve drastic changes in business processes and human resource management. Second, global information networks provide a new growth trajectory, which enables "leapfrogging" development of lower-income countries. Third, "economies of alliance" in the gig-economy are reshaping the workplace so that individuals with diverse skills are able to do multiple jobs. To benefit fully from innovation, we need to work together with technology, not compete against it. For this to happen, it is critical that we invest intensively in education to foster knowledge in the humanities and the social sciences as well as in the natural sciences and technology.