Innovation holds the key to sustainable economic growth

The Dubai skyline is proof of the vast potential the region has in terms of ingenuity.

A close look at the economic history of the world is enough to tell you that each nodal point in its evolution was accompanied by innovation. The catalyst to any change, it has been the single constant in the changing times. Now more than ever, there is a need to distinguish yourself in the global, crowded world through practices and ideas that disrupt the market.

We are living in times when innovation is the fuel that drives vision and creativity. It is not limited to the laboratories of advanced nations but is essential to the growth of the emerging economies as well. In fact, it is very well the key to a sustainable and equitable growth across the world.

The iconic Dubai skyline is proof of the vast potential the region has in terms of ingenuity. Futuristic buildings, man-made islands, spectacular marinas and the distinction of having the tallest building in the world have put it firmly on the global map. Not only does it act as a show of strength and prowess but also serves as a reminder to the world that innovation is at the core of the country's spirit. The principle flows from the vision of its founders who wanted to create a space where creativity thrived and was actualised.

Perhaps the greatest identifying trait of the UAE, apart from its oil, are its buildings and locales that give the entire region an unmistakable repute for converting ideas into action. Simply put, our physical fixtures drive innovation for it transforms the research into a tangible product. The real estate segment has done a remarkable job in leading the way in driving ideas to their final destination. The city has built itself from the ground up with each construction project redefining architecture the world over. Hence, innovation lies not only at the heart of the region but also at every turn.

Innovation builds a stronger industry and a stronger industry builds an economy that is not a slave to economic fluctuations. Every country, irrespective of its status, experiences economic downturns but a strong industrial sector can greatly diminish its adverse effects on the economy as a whole. It is not enough to have the biggest plant or cutting-edge technology to be seen in the global market, a firm needs to be a disruptor to firmly plant itself.

Take the recession that hit the world in 2008 and you will see that the countries with strong industrial sectors like the US, China, Japan, Germany and France did not buckle under the pressure of a failing economy. One might think that with the right logistical support, infrastructure and favourable government policies, any country can become an economic giant. While these factors are important, ultimately, only innovation will drive investment. Innovation, by its very nature, is unique and distinguishing and becomes the USP of the economy.

At the cost of broad generalisation, markets are either followers or innovators. The followers help actualise the innovator's vision and offer cheap labour and industries, thus shaping the economy to be restricted to its current role. The categorisation can be quite restricting as it inhibits any creative idea for there is no room or resources for innovation. This not only affects the economy's growth but also its future generation of entrepreneurs who will be bound by the limiting nature of the industries.

The governments of emerging economies are realising that to break away from the mould, a strong boost is required in terms of policies and are encouraging solutions made entirely at home. The UAE government has been particularly supportive of innovation becoming an integral part of the economic fabric. With past innovation weeks proving to be a massive success, February 2018 was declared as the month of innovation and saw people from across sectors participating in it. Organised under the Mohammed Bin Rashid Centre for Government Innovation, it is a step towards realising their goal of becoming the most innovative nation in the world.

Creativity is not a byproduct of state-of-the-art laboratories and equipments, it is a state of mind. It does not differ between advanced, emerging and developing nations but actually helps level the field. Creativity in providing solutions is not restricted to best practices, it is an overhaul to create new practices and is driven by a zeal to offer the unthinkable to the world.

I am of the belief that strong research and development is the backbone of a robust economy. In the year of Zayed, let us aspire to become a self-sustaining economy with more exports than imports across sectors.

The writer is managing director, Al Muqarram Industry. Views expressed are his own and do not reflect the newspaper's policy.