Innovation (economic and social) is the process of creating value through ideas. Economists have calculated that approximately 50% of the increase in U.S. GDP growth is the direct result of increases in innovation. Innovation powers research and development (R&D) spending. The U.S. is the leader in R&D spending. This year U.S. R&D spending is set to reach $600 billion, which is more than any other country in the world and more than 25% of the world's total according to the Global Innovation Index. The presence of dynamic innovation ecosystems is vital to driving R&D spending and economic growth.
Innovation ecosystems are environments comprised of synergistic public and private interests, resources, and structures that work to create value by transforming ideas into reality. These ecosystems are where startups, researchers, and investors cluster, and where opportunities to accelerate innovation are abundant.
Given that local communities and regional economies differ from one another, so too are the form and function of each innovation ecosystem across the country. Yet all such ecosystems make use of a framework for growth that is comprised of three foundational assets that are essential to success:
Unfortunately, low income and underrepresented Americans in urban and rural areas remain outside most innovation ecosystems. As a result, the need for talent in regional innovation ecosystems go unfulfilled and the prospect of shared prosperity and opportunities is severely limited. The cultivation of innovation ecosystems that embrace inclusion is critical to addressing this lingering dual challenge.
Progress often results from diverse perspectives. That is, the ability to see challenges differently, is often the key to critical breakthroughs. Inclusive Innovation is a practice that centers equality, diversity and inclusion in the design and development of innovative ideas, products, processes, or services.
Inclusive innovation is a way to strategically expand and reframe current practices. It encourages a fundamentally different approach by providing residents with access to opportunities at the grassroots level. Social impact, coupled with market-oriented activities, emphasize regional competitiveness capable of generating prosperity.