INNOVATION AND SOCIETY
Innovation is an attribute that is beneficial to a large society such as a
nation or region. Not only can innovation introduce new products and
services that enrich the lives of individuals both nationally and
internationally; it can also contribute significantly to economic growth.
Process innovation also increases the amount of economic growth by
providing cost competitiveness within a nation and attracting investment
by organizations that establish bases there. National economies develop
through the innovation and manufacturing abilities of their organizations
and from selling the resulting innovative products on the global market.
These activities not only bring increased revenue streams into the
economy, increasing the gross domestic product, but also provide
employment opportunities. On the other hand, innovation can have a
negative impact on society by wiping out traditional industries or having
other unintended side effects. For example, although a certain chemical
innovation may allow farmers to grow more crops per acre, it may also
pollute the environment, kill wildlife, and even cause human health
problems by working its way up the food chain. In order to balance the
advantages and disadvantages of particular innovations, specific
regulatory bodies such as the Food and Drug Administration have been
established; if side effects are deemed to be too dangerous, the product can
be blocked from reaching the market. Many national governments have
established agencies to promote and foster a more innovative culture in
order to increase wealth and reduce costs for the nation. In this respect,
performance indicators such as gross national product, export sales, direct
foreign investment, R&D expenditure, employment levels, and new
business startups suggest the innovative potential of a large society.