Business Support System

Executive Summary

Innovation is highly important to the conflict and intersectionivity levels of advanced capitalistic economies. It has tenacious been recognized that innovation is a key force of economic change, as it stimulates intense forms of competition. New products command a premium price, and as others seek to replicate those innovations to improve their testify products, those innovations diffuse widely into the economy, increasing general hearty-being. Innovation is partly about new products, but more importantly, innovation concerns create capacity to make profitable changes more effectively, encompassing changes in production technologies and techniques as well as new product introduction. More recently, this link between innovation capacity and competitiveness has been made explicit: there has been a realization that long term business competitiveness requires effective innovators as well as innovations.

The UKs long term productivity problem is partly a result of a dearth of UK innovation. UK Governments have long been concerned with increasing the amount performed by UK businesses. Historically, governments have seek two approaches to policy, creating innovative businesses and funding innovation in subsisting businesses. Although these policies have led to the existence of a number of precise innovative firms, but the overall economic benefits have been disappointing.



In particular, these approaches have failed to benefit firms not in direct admit of funds, especially small firms (SMEs), and they have not encouraged importantly more innovation, dynamism or spin-offs.

Contemporary policy thinking has move away from the more interventionist approaches towards a more foodstuff-focused perspective on supporting innovation, to intervene only to overcome identifiable market failures. The uncertain nature of innovation means that it is particularly attached to these failures, especially in the areas of pricing knowledge, estimating returns to innovation and the opportunity constitute of failure to innovate: policies in response include LINK, voguish and Foresight.

Not all businesses face...

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