Category: Innovation

When speaking of market modification, it is of crucial importance to tackle the notion of innovation. For instance, the economy of Egypt may be examined on the subject of innovation visualization. The innovation of products and collaboration with the global market is essential for the growth of countries’ economies. GII (Global Innovation Index) was designed to identify the specific country’s position worldwide in terms of implementing innovative tools for their development ambitions (Forouharfar et al.). It has much information about the current situation in the state and helps understand where to grow, what blind spots can be fixed.

Egypt has several imperfections in terms of innovation, and it includes regulation problems, the policy used for the development, access to education, electricity, and the Internet. GII data visualization tool helps distinguish between various indicators for specific analysis; for instance, sources of the data may be reviewed separately from other components. Thus, one can see that the primary source of information for GII is the World Bank that provides information on the country’s economic development. On the one hand, the index shows the internal country’s issues; on the other hand, the pole reflects the global scale position, which predetermines the possible direction for growth.

Academics are involved in the process and analyze the index for several fundamental reasons. Firstly, the data is useful for policymakers to examine the current situation and find other innovative ways. Secondly, the research highlights the areas that need immediate improvement. Moreover, this project pushes innovation forward to fix imperfections and blind spots. Even though there are some challenges for this research, for example, some designs are not recorded within the country, some of the data may be late; it is still crucial for improving the current situation. Thus, the GII visualization tool is an important instrument for analyzing existing data and the country’s position on the global scale in terms of implementing innovation. Policymakers can find this project useful as it shows blind spots and ways for further growth.

Work Cited

Forouharfar, Amir, et al. “A Taxonomic Study of Innovation in the MENA Region Economies: Reflections on Entrepreneurism in Egypt and Qatar.” Entrepreneurship Education and Research in the Middle East and North Africa (MENA). Springer, Cham, 2018, pp. 255-271.

Introduction

Innovations and policy systems are integral parts of the economic development process that is accompanied by structural transformation. Considering the interrelated nature of the above elements, there is a need to pay particular attention to incorporating science, technology, and innovation into policies. Such an approach can trigger change processes and technological learning, which, in turn, determine the success of sustainable development (Raven and Walrave, 2020; Rogge, Kern, and Howlett, 2017). A range of areas is impacted by the need to focus on the co-evolution of policy and innovations, including health and well-being, education, clean water, life below water and on land, poverty, inequality, climate action, clean energy, sustainable communities, as well as responsible production and consumption. Therefore, this paper focuses on the examination of the dynamics of the joint evolution of policy and innovation.

Examining the Co-Evolution of Innovations and Policy Mix

Reasons for Aligning Policy and Innovations

Sustainability-centered innovation systems can be defined as the networks of institutions that design, adjust and diffuse technologies to decrease the environmental impacts. It is critical to move from considering the business as a traditional model for profit towards applying sustainable strategies and a green economy. Ely et al. (2013) emphasize that there is a need for creating new institutions that should prioritize and encourage eco-innovations, which is especially pertinent to the private sector of business. The case of Rio+20 shows that the practices of indigenous peoples are representative of biodiversity preservation and promotion, which can be used as an example of facilitating entrepreneurship in developing countries (Ely et al., 2013). In this connection, corporate sustainability reporting is one of the initiatives that imply a transparent and comprehensive clarification of a firm’s solutions.

Hybrid approaches to linking policy and innovation systems emerge as the ways to ensure business sustainability. Compared to grassroots innovation and green industrialization approaches, they are largely non-governmental and crowd-sourced in nature (Edmondson, Rogge, and Kern, 2020). The cooperative motivations of hybrid approaches are driven by shared technologies and the intersection of local and global knowledge. Examples of hybrids in the UK include Big Barn, the Food Assembly, Farm Drop, et cetera. It becomes evident that the identified approach has the most convincing opportunities for transformational change across the sectors of the economy.

Speaking of policy implications, it is essential to state that their governance of co-evolving innovations is the key challenge. The hybrid approaches require paying attention to infrastructure and network facilitation, financial issues, indigenous capabilities, and regulation. Most importantly, the current unsustainable practices of systems should be revealed based on the design and implementation of policies and policy mixes (Edmondson, Rogge, and Kern, 2020). While taking into account social and environmental goals, the transformative potential of hybrids should be reinforced by democratic politics.

Policy Mix and Innovation Thinking in Sustainability Transitions

The literature on policy and policy mixes shows that the approach to investigating these issues was largely associated with the attention to governing bodies instead of the features of socio-technical systems. Kern and Rogge (2018) state that the inability of policymakers to design proper policies caused their iterations. In this connection, it should be stressed that the interdependencies between the mentioned systems and policies are more important than was considered earlier. Policy learning seems to play a decisive role in inducing technological change using examining various elements of innovation systems, even though the outcomes can be hardly anticipated. Currently, there is a lack of sufficient knowledge since the studies mainly focus on the positive results (Kern, Rogge, and Howlett, 2019; Kivimaa and Virkamäki, 2014). For example, it is stated that by fostering the overcoming of failure challenges, it is possible to achieve lower production costs and scale up the production.

The technological change that is induced by policy mix reflects the dynamics of co-evolution of innovation and policy. The article by Hoppmann, Huenteler, and Girod (2014) provides an example of how policy learning mechanisms can support the process of policy formation. The above authors claim that the formal institutionalization of learning procedures is more important than policy interventions. The regulatory changes influence policy dynamics, but often, the outcomes exceed those that were anticipated by policymakers. The case of the German study in the field of solar energy points to a significant technological change that was stimulated by the German feed-in tariff (FIT) scheme (Hoppmann, Huenteler, and Girod, 2014). These results show that policy interventions and technological change mutually affect each other (Kern, Kivimaa, and Martiskainen, 2017). Consequently, the resolution of emerging concerns should be approached based on the consideration of both components of change.

A novel analytical framework that focuses on the co-evolutionary nature of technology and policy assist in considering its dynamics. Edmondson, Rogge, and Kern (2020) explore the UK Zero Carbon Homes (ZCH) policy mix, focusing on such dimensions as the knowledge of industry, industry lobbying, technical standards, and uncertainty regarding costs. The above authors conducted an attempt to structure the dynamic interactions within the policy mix and socio-technical system. To address this goal, they applied a qualitative research design and provided a case study analysis. The results of this study point to an important role of credibility that acts as one of the most powerful factors of change. Specifically to ZCH, it was found that “there are no requirements to evaluate buildings post-construction, and the regulations are based on an ‘as-designed’ specification” (Edmondson, Rogge and Kern, 2020, p. 34). The performance of buildings was associated with replacing the materials with cheaper ones and the so-called ‘value-engineered’ elements. Consistent with Reichardt et al. (2016), Edmondson, Rogge, and Kern (2020) state that exogenous conditions impact both socio-technical and policy mix systems.

The resistance of the economy to scientific and technological innovations, the aging of fixed assets, as well as the slow decline in metal and energy intensity promotes the debate about the problem of working not only with social but also with technical systems that determine a person’s social life. The transition to a new approach to the development of society, science, technology, and production, dictates the need for non-monopolized structures that are ready for rapid, clear, coherent, and economically-beneficial cooperation (Kemp, Barteková and Türkeli, 2017). It entails the creation of vehicles that are more versatile, less costly, and environmentally friendly. The transition to a new socio-economic situation in the country presents new and higher requirements for the governance of scientific and technical activities and their effectiveness. The issues of defining vital systems become extremely important, among which technical systems play a special role, including benefits to humanity (Adil and Ko, 2016; Rogge and Reichardt, 2016). Their irregularity and inconsistence of existing policies current can cause tremendous harm and significantly impede progress in terms of sustainable transitions.

Given the abovementioned problem, it is necessary to discuss the creation and functioning of such a vehicle management system that would be an organic part of the whole mechanism for managing social production and the entire economy of the country. Under these conditions, the choice of scientifically based priorities for the development of science, technology, and production becomes a fundamental means of developing a strategy (Greenwood, Congreve, and King, 2017). The question arises of creating a mechanism for a comprehensively managed system of society, including technological change, which plays a leading role in socio-economic development (Greenwood, Congreve, and King, 2017; Rogge and Reichardt, 2016). Thus, an adequate high-quality and logical-mathematical approach to the management of technical systems is required.

On the one hand, the democratization of public life makes it possible to increase the role of citizens and non-governmental organizations in preparing important decisions in the field of nature conservation. There is no accident that it was environmental movements that were among the first to be included in the democratic process (Lacasa and Shubbak, 2018). Reforms create prerequisites for embarking on the path of sustainable development and allow formulating a new national idea and development strategy, which opens the way to harmonizing the interests of an individual, society, and state. On the other hand, now the actual situation is such that the problem of environmental protection, being ten years ago one of the priority state problems, is now tends to be on the periphery of priorities (Ma et al., 2018; Rogge and Reichardt, 2016). The authorities should finally comprehend the fact that the strategic path of national development is inconceivable without an organic combination of developed democracy, sustainable development, and environmental protection, and that these three components cannot exist and develop separately.

In this new quality, democracy, capable of realizing the goals of sustainable development, has several features that promote the transition to sustainable development in the short- and long- term. Qualitative changes must take place in democratic procedures both at the global and national levels. First, the democratic decision-making procedure by the majority requires a relatively long time for its implementation (Rogge and Dütschke, 2018). To convince the majority of the country’s population to consciously abandon the consumer mentality and adopt a rational environmental point of view is a complex and lengthy process that goes beyond the time of the onset of an environmental catastrophe. Second, there is no certainty that the majority of the population, during a hypothetical referendum on sustainable development issues, will vote in favor of a reasonable solution proposed by the intellectual elite, who realized the harmfulness of the path of sustainable development (Grubb, McDowall and Drummond, 2017). Most likely, the modern democratic procedure, majority, and representative lobbying mechanisms will protect the economic interests of the majority and not the spiritual values ​​of environmentalists.

The anthropocentric nature of the traditional development of law is unpromising for the transition to the path of sustainable development. According to Kwon, Jeong, and Yi (2018), legal relations should be substantially greened, gradually turning into social relations. There is a need for the legal regulation of new social relations in the sphere of interaction between society and nature (Zavadskas et al., 2016). Thus, the environmental function of the state is to improve environmental law. The international legal documents governing the transition to sustainable development on a global scale are not yet available. For example, the United Nations Conference on Environment and Development (UNCED) documents are advisory: there are mere agreements signed by the heads of government and leaders of states (Kwon, Jeong, and Yi, 2018). At the present stage, legal support for the transition to sustainable development should take place, first of all, within the framework of specific states, and secondly – at the international level. Within the framework of a particular state, it becomes possible to use more stringent regulatory mechanisms than contractual relations at the international level.

The transition of the state economy to an innovative type of development is impossible without the formation of a globally competitive national innovation system (Rogge and Dütschke, 2018). The latter can be understood as a set of interconnected structures engaged in the production and/or commercialization of knowledge and technologies, and a complex of economic, legal, and social institutions. They underlie the interaction of entrepreneurial, scientific, and non-profit organizations and structures in all the areas of the economy and public life (Grubb, McDowall and Drummond, 2017; Zavadskas et al., 2016). To create an effective national innovation system, it is necessary to increase the demand for innovations from most sectors of the economy since currently, innovation activity is concentrated in a narrow number of sectors, and technological renewal of production relies on technology imports rather than on developments.

It is also critical to overcoming the fragmentation of the created innovation infrastructure, since many of its elements are created, but does not support the innovation process throughout the process of generation, commercialization, and implementation of innovations. The goal of creating a national system for supporting innovation and technological development is a large-scale technological upgrade of production (Rogge and Dütschke, 2018). It can be based on advanced scientific and technical developments, the formation of a competitive national research and development sector that ensures the transition of the economy to an innovative development path (Kwon, Jeong, and Yi, 2018; Pan and Ning, 2015). The formation of innovative behavior models should be prioritized among the population and enterprises, along with support for the policy processes and the spread of innovation in all sectors of the economy. This will ensure scientific and technological leadership in areas that determine both competitive advantages and national security. The awareness of the dynamics of the policymaking process in the context of innovations infrastructure creates opportunities for increasing credibility and progress towards sustainable development transitions.

Feedback Mechanisms

Policies affect the process of transitioning towards sustainable development, while it is widely regarded that they result from political processes. According to a policy feedback theory, the current policies shape policymaking processes, serving as inputs in a systemic and cyclic procedure. Payne and Barker (2018) mention that policies impact public members, agencies, the political elite, and other interested parties. At the public level, policies can affect the attitudes of people regarding the role of the government and institutions or determine the level of political participation. In turn, at the elite level, policies encourage discussions on resources, institutional capacity, and financial constraints (Hoppmann, Huenteler, and Girod, 2014). In this connection, it is possible to assume that the feedback theory enriches the analysis of the co-evolution of policy and innovations, explaining the ways the existing policy designs influence the future policy mixes.

The insights from the literature shed light on the dynamics of feedback, allowing the scholars and readers to consider both positive and negative aspects. It is essential to state that the policy feedback theory is defined as a promising framework for analyzing the process where innovation and policy mix evolve simultaneously. Quitzow (2015) points to the fact that positive feedback is more likely to induce the self-reinforcement of the so-called virtuous cycle. The core of the identified framework examines the direction and rate of the impact made by policy mix on a socio-technical system. In particular, this theory clarifies the three types of feedback, including administrative, fiscal, and socio-political. In addition, importance is given to the role of the exogenous factors, such as political, economic, and social tendencies (Edmondson, Rogge, and Kern, 2020; Quitzow, 2015). For instance, the events that raise the attention to policy problems in combination with positive feedback increase the probability of promoting policy alteration.

In terms of the policy feedback framework, positive feedback promotes steady resource flows, and negative feedback leads to the limited capacity of policy mix to remain stable. The study by Edmondson, Rogge and Kern (2020) indicates the case of how positive feedback may turn into a negative one. The authors rationally state that the strong political commitment and proper resource allocation attracted support for innovations. Also, high-volume house-builders were attracted by the proposals of large eco-town creation, which was regarded as a great advantage. Similar effects are noted by Reichardt, Rogge, and Negro (2017), who emphasizes that if the actors of the market consider the transition to sustainability as an opportunity, they are more likely to be supported. The recession of the housebuilding socio-technical system deteriorated the market conditions, which led to the delay of projects. When the policy mix that was associated with the support of green initiatives was removed, the virtuous cycle changed to a vicious one (Edmondson, Rogge, and Kern, 2020). For example, the standards of the area were decreased, which meant that the companies had less encouragement to innovate their performance.

The academic literature shows that positive feedback is prone to become stable, which makes it much more difficult for firms to seek alternative options. In this regard, one can argue that the timing of policy mix implementation plays an important role in the success of a project. Consistent with Edmondson, Kern, and Rogge (2019), it is possible to assume that the environment is unpredictable, yet some responses can still be anticipated. The government reactions can drastically change the outcome of policy mixes and undermine positive effects. Accordingly, it allows for stating that the policymakers that aim to support sustainable development should strive to preserve credibility along with political commitment. This recommendation is based on the idea of “creating a new veto player, reducing the scope of the enacting government for retrenchment” (Edmondson, Kern, and Rogge, 2019, p. 32). The turbulent political conditions should be acknowledged as difficult, and the maintenance of credibility should ensure clear resource allocation and strong leadership in the field.

In a coupled model of world climate studies, research and development results and market needs compose the source of ideas (Howlett and Mukherjee, 2018). It means that there may be more than one direct path from research to the commercialization of innovation. Innovation is seen as a logically sequential yet not necessarily continuous process, while feedback loops may occur at any of the subsequent stages. For example, market testing of a new product may indicate a need for design refinement. If it is impossible to solve the identified problem within the framework of existing knowledge, there is a need for additional research (Howlett and Mukherjee, 2018; Yang, Pan, and Pan, 2019). The implementation of the coupled model of information interaction between scientific, industrial, and marketing activities allows for reducing the costs of companies.

Conclusion

In conclusion, it should be emphasized that the co-evolution of policy mix and innovation is a significant yet underexplored research area. Some studies that are critically reviewed in this paper demonstrate the attempts to identify the links between individual policies and their impact on socio-technical systems. The extension of the scope of analysis to policy mix, this paper discussed multiple policy effects and feedback mechanisms, thus conceptualizing how the changes in policies impact the emergence of innovations and vice versa. The theoretical and practical implications of understanding these impacts are associated with the contribution to fostering sustainable development. It is essential to implement the policy mix at both local and global levels to meet high-quality planning requirements and control the integration of policies and innovations in places. The co-evolution of the policy mix and technology should be explored in terms of policy design and implementation in further studies.

Reference List

Adil, A. M. and Ko, Y. (2016) ‘Socio-technical evolution of decentralized energy systems: a critical review and implications for urban planning and policy’, Renewable and Sustainable Energy Reviews, 57, pp. 1025-1037.

Edmondson, D. L., Kern, F. and Rogge, K. S. (2019) ‘The co-evolution of policy mixes and socio-technical systems: towards a conceptual framework of policy mix feedback in sustainability transitions’, Research Policy, 48(10), pp. 1-50.

Edmondson, D. L., Rogge, K. S. and Kern, F. (2020) ‘Zero carbon homes in the UK? Analysing the co-evolution of policy mix and socio-technical system’, Environmental Innovation and Societal Transitions, 35, pp. 135-161.

Ely, A. et al. (2013) ‘Innovation politics post-Rio+ 20: hybrid pathways to sustainability?’, Environment and Planning C: Government and Policy, 31(6), pp. 1063-1081.

Greenwood, D., Congreve, A. and King, M. (2017) ‘Streamlining or watering down? Assessing the ‘smartness’ of policy and standards for the promotion of low and zero carbon homes in England 2010–15’, Energy Policy, 110, pp. 490-499.

Grubb, M., McDowall, W. and Drummond, P. (2017) ‘On order and complexity in innovations systems: conceptual frameworks for policy mixes in sustainability transitions’, Energy Research & Social Science, 33, pp. 21-34.

Hoppmann, J., Huenteler, J. and Girod, B. (2014) ‘Compulsive policy-making — the evolution of the German feed-in tariff system for solar photovoltaic power’, Research Policy, 43(8), pp. 1422-1441.

Howlett, M. and Mukherjee, I. (2018) Routledge handbook of policy design. New York: Routledge.

Kemp, R., Barteková, E. and Türkeli, S. (2017) ‘The innovation trajectory of eco-cement in the Netherlands: a co-evolution analysis’, International Economics and Economic Policy, 14(3), pp. 409-429.

Kern, F. and Rogge, K. S. (2018) ‘Harnessing theories of the policy process for analysing the politics of sustainability transitions: a critical survey’, Environmental Innovation and Societal Transitions, 27, pp. 102-117.

Kern, F., Kivimaa, P. and Martiskainen, M. (2017) ‘Policy packaging or policy patching? The development of complex energy efficiency policy mixes’, Energy Research & Social Science, 23, 11-25.

Kern, F., Rogge, K. S. and Howlett, M. (2019) ‘Policy mixes for sustainability transitions: new approaches and insights through bridging innovation and policy studies’, Research Policy, 48(10), pp. 1-15.

Kivimaa, P. and Virkamäki, V. (2014) ‘Policy mixes, policy interplay and low carbon transitions: the case of passenger transport in Finland’, Environmental Policy and Governance, 24(1), pp. 28-41.

Kwon, K. S., Jeong, S. and Yi, C. G. (2018) ‘Science and technology policy studies, society, and the state: an analysis of a co-evolution among social issue, governmental policy, and academic research in science and technology’, Journal of Korea Technology Innovation Society, 21(1), pp. 64-91.

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The government start projects with the aim of supporting its people get jobs. The tasks then boost the country’s economy by generating revenue. The government targets how the public will benefit from it. For years now, Canada has been in the realm of infrastructure development and talent nurturing. The government plan to make the District the center for innovation to develop talent in the young people.

Technology is the backbone of all invention and talent development (Media press release, 2020). Therefore, the government of Canada has put more emphasis on technology in this project. The ultimate objective is to help build and grow small businesses within Brampton. Several entrepreneurs and business incubators have joined this mega project. One of these partners is Brampton Entrepreneur Center which has focused on productivity and creativity.

Overview of the Project

Brampton’s Innovation District is a project started on Friday fourth, 2020. The project was later launched on Wednesday the following week. The city is aiming at investing in technology, business, and education by building an Innovation District. The funding is majorly from the government, which tends to spend approximately $20.5 million. Besides that, there will be an addition of $55.2 million, which the partners will fund.

From 2019 up to date, six partners have joined to help achieve this mission (Paul, 2021). These partners are Brampton Entrepreneurs Centre, BHive Brampton, the Ryerson-led Venture Zone, Altitude Accelerator, the Founder Institute, Algoma University, and the Rogers Cybersecure Catalyst Headquarters. However, Sheridan Edge, the Brampton Board of Trade, and Downtown Brampton BIA are the main partners. Together with the government, all of these partners have committed to support building the lives of millions of Canadian people.

Some of the key players in this significant development are Brampton mayor Patrick Brown and regional councilor Rowena Santos. The idea of innovation came when COVID hit and the town was hit hard more than rural areas. The pandemic showed the socio-economic inequalities that existed in urban Canada. Through these inequalities, these two people came with the idea of expanding green spaces, especially in Brampton (Kronfli, 2018).

Santos, who represents wards 1 and 5, says the adoption of technology will boost innovation. “The project concerns the environment, employment and urban centers, neighborhoods, transportation, social issues, health, and arts and culture,” says Santos. According to the regional councilor, the aim is to bring an integrated downtown plan which will focus on inclusivity, innovation, and sustainability. According to the mayor who pushed for the $21 million allocations, the project is a game-changer, especially for the people of Brampton.

Reaction to the Project

The project has hosted more than 3 288 sessions, workshops, and events that encourage innovation, technology, and entrepreneurship. These sessions are one on one business consultation, training, startup workshops, and cyber security campaigns. The District has hired over 49 employees up to the year 2021. In addition to this, BHive has engaged with 73 international startups since May 2021. In July, the city announced that Diamond Schmitt would be the architect for its Centre for Innovation, which will be located in the heart of Brampton’s downtown center and will support the city’s post-secondary institutions (Brampton University, 2017).

The approach will create a collaborative space that offers a centralized library and connectivity between institutions and local businesses. That means the Brampton workforce will be interconnected with skilled jobs in the future. Employment and Skills Development Canada awarded $1.9 million to Rogers Cybersecure Catalyst to support the expansion of the Cybersecurity Training Program.

Public debates have come up with the new development taking place at Downtown Brampton. The existing transport network does not support two-way service. That means, if the population increases due to the innovation startup, there will be congestion. On the flip side, the city council and the government can develop by building better roads before this. The other opposing debate is the limitation of the train during rush hour service (Clarrie, 2021). The GO Train service at the Brampton Station limits people on the Orange/ Brampton route during business hours (6 am to 5 pm). In terms of human capital, Brampton has low education levels.

Several people in this town have not gone beyond high school education. The project funders should invest more in real estate to cover the gap. Changing investment priorities and unpredictable timescales on transit upgrades may harm future growth rates and possible development activities within the industry. These critics were published by Downtown Brampton University and the Centre for Education, Innovation, and Collaboration.

Assessment of the Project

Through a trickle-down development model, the project creates regional development by creating resilience and competitive advantage to Brampton’s economy. This achievement is possible through advanced and long-term actions. However, the results are based on four cornerstones; Innovation, Technology, Entrepreneurship, and Arts. With trickle-down development, one significant investment supports the other below it (Akinci, 2018).

For example, when the project is completed and fully functional, it will provide support to local businesses at every stage in their growth journey. The Innovation District’s continuous development is a major activity in the Economic Recovery Strategy, and the Ryerson Venture Zone is an essential component of the District’s growth. A lot of investors will come forward to own a place when the project is completed. That is one way of motivating the business people who at one time might have lost hope due to the pandemic. With the trickle-down method of development, empowerment is possible. There will also be the creation of employment, as earlier illustrated in this paper.

With the investment being strategically in the middle of the city, Brampton gets an added advantage in terms of growth. The development of the town can also attract more investors and pressure for the development of infrastructure. The infrastructure right now in Brampton is predicted to be congested due to a high number of people (Gill & Noronha, 2019). When this happens, the government will be required to expand the road. The investors will also be forced to build more houses for the residents. The level of education in the city will increase due to the development of the library. The connection of skilled people with jobs will ensure steady growth and excellent revenue collection.

Conclusion

Brampton District was a forgotten town that was highly affected by the pandemic. Through the town mayor and the councilor, the city is set to grow in population and economy. A lot of people will be empowered through various channels to invest and contribute to the growth. With the adoption of technology and entrepreneurship, the town has been growing exponentially. Partners have come up to support the project both financially and through training. For example, BHive offered to train people on matters to do with Cyber security. A lot of youths in the region have been employed courtesy of Brampton Innovative District. In addition, young people have been trained on technology innovations, especially cyber security. The project has promoted arts to help those with a passion for art to pursue it.

References

Akinci, M. (2018). Inequality and economic growth: Trickle‐down effect revisited. Development Policy Review, 36, O1-O24.

Clarrie Feinstein, F. (2021). Everything you need to know about Brampton’s Innovation District. Web.

Downtown Brampton BIA (2020). Brampton’s Innovation District will advance economic recovery. Web.

Downtown Brampton University and Centre for Education, Innovation and Collaboration (2017). Economic Impact Statement, 95. Web.

Gill, M., Klassen, C. A., Liviero, C., & Noronha, N. (2019). Community Arts Programming in Southern Ontario, 70, 127.

Kronfli, C. (2018). About the Ontario Chamber of Commerce.

Paul Barker, P. (2021). The transformation of Brampton. Web.

Introduction

In the last century, innovation has proved to be one of the most disruptive forces in business. It involves the creation and improvement of products or services in the market using different tools that foster information exchange at market, technological and national levels (Podcameni et al., 2019). This process has contributed to the uneven distribution of resources across different regions because some places are more adapted to innovation than others (Li and Huang, 2019). For example, North America is home to most of the world’s most innovative companies in the tech industry, such as Google, iPhone, Microsoft and Amazon, while other parts of the world are catching up. As the pace of global commerce continues to increase, geographical differences in innovation capacity will continue to widen.

Variations in the ability to innovate across different geographical boundaries mean that the same disparities will be transferred into business ecosystems. Similarly, the effects of innovation are often felt at different levels of performance, including economic (employment rate and exports), industry (growth and survival), firm (profits and growth) and technological (patents) (Zizlavsky, 2015). Stemming from this ranking method, in this paper, the European Innovation Scoreboard of 2018 will be used to evaluate Bucharest’s innovation performance, relative to other cities in Romania. Its performance will be compared to that of the industry and its peers using the central place theory, which highlights the roles of cities as central hubs of innovation for other undeveloped parts of the country. From its use, Bucharest will be presented as Romania’s main innovation centre.

Literature Review

Effective Use of Capital

Innovation is an important contributor to organisational success because capital is scarce and sought by multiple prospective businesses. The Solow model examines the long-term growth of businesses through capital accumulation and analysis (Hendrik and Lewer, 2015). It traces its roots to the field of neoclassical economics, which positions business growth and development within two forces of supply and demand (Adams, 2019). Consequently, it relies on diminishing returns on capital as the main driver of business development and growth because the effective use of capital is an important requirement in the development of innovative ideas.

Considering people are motivated to make a profit on their capital, innovation allows them to maximise returns through high yields associated with the introduction and adoption of novel ideas in business. Similarly, innovation gives firms an opportunity to recoup their investments through research and development because it is difficult to sustain high levels of capital flows if a business consistently makes losses (Gustafsson, Snyder and Witell, 2020; Patrício, Gustafsson and Fisk, 2018). This statement explains why, regardless of a country’s economic performance, there is a common per capita position assumed by citizens. The uniformity is based on diminishing marginal returns on capital, which should be ideally be offset through innovation (Bogers et al., 2019; García Manjón, Mompó and Redoli, 2016). Therefore, the effective use of capital emerges as an important constituent of the innovation process.

Complexity of the Modern Economy

One of the main challenges affecting the adoption of creative innovation systems is the complexity of the modern economy. It affects innovation processes by linking thousands of autonomous entities in nurturing creative ideas (Banerjee, 2020). The process typically involves seeking private-public partnerships that foster information exchange across both sectors but the flow of value may also stretch further to encompass institutions, powerful individuals, administrations and foundations (Lewis, Ricard and Klijn, 2018; Bach et al., 2019). They all play a role in the creation of innovative ideas based on the complexity of the modern economy.

It is difficult to control innovation systems through a centralised command structure because some of the above-mentioned constituents of innovation processes have operational structures that do not necessarily conform to a common point of control. Furthermore, some of the roles and capabilities of the actors involved change too fast because they have to adapt to multiple environmental and market forces (Jenkins, 2019). Moreover, they are often forced to respond to new business challenges and opportunities – a process that could significantly change their perspective of innovation and its role in boosting global commerce (Lala and Sinha, 2019).

In this framework of analysis, the role of government in creating a good environment for innovation comes into focus. Building universities, institutions of higher learning, or developing research and development centres in different geographical regions in a country are only a few methods through which governments can support innovation (Mamidipudi and Frahm, 2020). From this analysis, there is increased sensitisation among policymakers about the need to improve the efficiency of innovation systems and cater to the needs of different actors who operate in today’s complex global commercial space.

Environment for Innovation

Innovation often occurs when there are right conditions for growth. Particularly, it needs to be nurtured and cared for in a supportive environment because research has shown that the most successful innovators thrive in a “healthy” environment (Lewis, Ricard and Klijn, 2018; Bach et al., 2019). From this line of reasoning, some researchers suggest that policymakers should stop treating innovation as a separate activity from the daily running of organisational affairs; instead, they should mainstream it into existing systems and support it as part of a country’s daily operations (Gustafsson, Snyder and Witell, 2020). Research also suggests that policymakers can either muffle or support innovation by formulating laws or nurturing attitudes that have this effect (Hendrik and Lewer, 2015). Therefore, the environment created within a given geographical region is responsible for the rate of innovation witnessed in the area. Nonetheless, multiple factors may undermine innovation in any given economic setting. Consequently, some researchers suggest that the best strategy to remedy the situation is to increase awareness about these factors and take appropriate action to control their effects (Patrício, Gustafsson and Fisk, 2018). The strategy has had mixed results.

Regional and national disparities in political, economic and social development have also contributed to the creation of a conducive environment for innovation. For example, some Nordic countries, such as Norway, Denmark and Sweden, lead other nations in coming up with new products and services in various economic sectors (European Commission, 2020). Works of literature that support this statement have analysed novelty in developed and developing countries, as unique segments of the global market that require different policy solutions (Freire-Gibb and Gregson, 2019). For example, it is recommended that innovative practices in developing countries should be undertaken ethically because innovation is often adopted incrementally (Ajayi and Morton, 2015; Basant, 2018). Stated differently, most innovative activities first occur at an industry level and later at national or organisational levels. Many developing nations use this system of technological adoption because the risk of failure is usually too high for firms or economies to absorb (YuSheng and Ibrahim, 2020). Furthermore, due to resource limitations, developing nations choose to build on what others have done.

Comparatively, research and development activities undertaken in developed nations should have a broader analysis of their impact on health, economy, culture and community (Ajayi and Morton, 2015; Basant, 2018; YuSheng and Ibrahim, 2020; Régibeau and Rockett, 2019). These proposals share a close relationship with the works of other researchers, such as Banerjee, (2020), who note that innovation should be creative and pragmatic to the extent that it is relevant to the people or institutions that use it. Alternatively, some researchers have analysed innovation from an organisational perspective with its application limited to the development of competitive advantages for multinationals that operate in various markets around the world (Ajayi and Morton, 2015; Basant, 2018; YuSheng and Ibrahim, 2020; Bock et al., 2015). In this context, noveltyt thrives on a system of knowledge exchange where ideas are shared to solve organisational or market-related problems. For example, the works of Tsvetkova, Pugh and Schmutzler (2019) suggest that novelty is important to the development of the global economy because it offers companies multiple tools they can use to cement or improve their market positions.

Overall, most of the literature on innovation and geographies of the global economy are spread and far between. It can be deduced that researchers have explored innovation in a dichotomous format using the aforementioned examples of how developing and developed nations manage innovation. There are only a few notable mentions of how the two concepts relate with one another. Nonetheless, there is still a weak link between the concept and the geographical positioning of cities across countries. The adoption of the linear model of technological transfer, which analyses innovation in a quantitative lens, has compounded this problem and created an innovation gap in some cities and countries.

Analysis of Bucharest

As highlighted in this document, Bucharest is Romania’s innovation hub. As a member of the European Union (EU) Romania’s innovation performance can be evaluated using the European Innovation Scoreboard described below.

The model highlighted above suggests that innovation can be evaluated by assessing framework conditions, investments made, innovation activities undertaken and their impact on society. Based on these criteria, Romania and Bucharest, in particular, trail their EU counterparts in innovation. According to the European Commission (2020), Sweden is the leading innovation centre in the EU because it has the highest innovation score based on the criteria described above.

Despite making significant progress in creating a conducive environment for innovation, Bucharest still trails its EU counterparts in performance. For example, the latest ranking on the European Innovation Scoreboard is below the EU’s average (European Commission, 2020). Stated differently, it has a lower score than 50%. This performance categorises Bucharest in the lowest group of EU innovators – “modest innovators”. According to the European Commission, (2020), the other categories are “innovation leaders,” “strong innovators,” and “moderate innovators.” “Innovation leaders” include leading countries, such as Denmark and Finland, which have the highest EU ranking scores. Comparatively, “strong innovators” are countries, such as France and Germany, which have a strong tradition of innovation. Their performance is above or close to the EU average. Lastly, the category of “moderate innovators” is comprised of many eastern European countries, such as Estonia and Lithuania, which have an average performance on the EU score (European Commission, 2020). Therefore, Bucharest’s performance is lower than 50% but the best among other cities in Romania.

Bucharest’s decline in performance has happened gradually with the first indicator of troubling times emerging in 2012 and persisting until 2014. Since then, the city’s performance remained relatively stable until 2017 when it started a gradual increase until 2019 (European Commission, 2020). This enhanced performance emerged from an improved innovation environment in Romania. Increased broadband penetration and the production of high-tech products are the major drivers of change based on EU standards. Comparatively, human resource development and capital investments are the weakest areas of innovation development (European Commission, 2020). In-house innovation practices undertaken in Bucharest have also played a key role in reducing the city’s ranking according to EU standards.

These findings suggest that there is a need for a sectoral analysis of Bucharest’s innovation performance to identify strong and weak areas of its operations that influence performance. By doing so, it would be easy to identify areas that need improvement or correction through policy suggestions. Similarly, this plan would help to identify structural changes within the city’s current innovation systems that would need to be re-examined by redesigning some of its fundamental operations and eliminating others.

The differences between Bucharest’s performance and its EU counterparts partly expose social and economic divisions within regions and cities in Europe. These comparisons are partly explained by the convergence theory, which presupposes that high income tends to cluster within certain areas, thereby supporting innovation in only those zones closest to them (Papantoniou and Vionis, 2019). It is also worth noting that there are structural differences between Romania and other EU states, which could explain its poor performance in the aforementioned rankings.

The broader analysis of EU countries, compared to other nations around the world, suggest that most European countries are ahead of the United States (US), Brazil, South Africa, China and India, in terms of innovation support. However, from a Romanian standpoint, the innovation happening in Bucharest is reminiscent of Christaller’s central place theory, which explains the geographical and spatial distribution of cities as centres for providing goods and services to surrounding regions. Using its key tenets, the innovation happening in Bucharest can be assumed to be useful to regions bordering the city and beyond. Therefore, the city acts as an incubation centre for innovation and new technologies in Romania. The advances made are later disseminated to companies operating within and around it.

The basic premise of the central place theory to this analysis is that settlements are located in relation to one another. Therefore, the functions of one city may be felt across its borders. However, it is worth noting that the basic assumption of this theory is that people are evenly geographically dispersed and that they have the same purchasing power, which is not always the case. New geography models also explain how knowledge is diffused from one geographical location to another (Pinfield and Middleton, 2016). They complement the idea that economic integration increases spatial agglomeration.

Bucharest, being the financial and innovation capital in Romania, has become a testing ground for businesspeople seeking a “big challenge” in their personal and professional careers. For example, in an article authored by Rudolph (2019), it was established that Bucharest was home to most of the country’s start-ups, including mobility-based companies that are developing new ways to ease traffic congestion in the city. Before these applications are adopted in other metropolitan areas within Romania, they have to be tested in Bucharest. Consequently, after obtaining proof of concept and market success in this region, the benefits are spread to other geographical locations.

The example above demonstrates the power of the central place theory in predicting the origin and trend of innovation adoption in Bucharest. It shares a close relationship with the endogenous growth theory, which explains why cities like Bucharest are pioneers in their geographical regions. The central place theory suggests that such capitals are centres of service delivery because they have a high concentration of professionals and skilled labourers (Morley, 2015). This statement taps into regional differences in productivity across Romania because Bucharest tends to have a higher concentration of resources and human skills than other metropolitan areas in the country.

Unbalanced levels of technological development and innovation that occur in Bucharest, relative to other major metropolitan areas in Romania, such as Cluj-Napoca and Timișoara, explain the “unfair advantage” it has compared to other Romanian cities. However, Bucharest’s financial and economic might does not mean that other cities are inferior; places like Cluj-Napoca are known for harbouring other special attributes of Romania, such as its rich historical and cultural significance (EXIMTUR, 2020). The different types of characterises in Romanian cities explains why there is an influx of people across different metropolitan areas. They exchange value with one another through economic and cultural interactions. The central place theory explains why such relationships exist because value flows from one geographical location to another based on place differentials.

Bucharest’s significance to the economy and prosperity of Romania is further highlighted by its dominance in productivity across political and economic circles, relative to other cities in the country. For example, several knowledge-producing industries are located in the city relative to others in the country (Romania Journal, 2018). This dominance is rooted in the bigger knowledge base Bucharest has compared to other cities in the country. For example, more than 12% of the city’s population works in knowledge-sharing industries (Romania Journal, 2018). Vesta is the only city that comes close to Bucharest because 3% of its working population is involved in the knowledge-based economy (Romania Journal, 2018). These statistics reveal that Bucharest is more developed than other regions of Romania.

Suitable Policy Measures

Each city or country has its institutional history and policy characteristics that dictate how innovation is nurtured and disseminated. At the beginning of the 19^th century, just like many European countries, Romania implemented a range of policies that would encourage innovation and research by supporting developments in science and technology (Grobbelaar and Uriona-Maldonado, 2019). For more than 30 years after the introduction of these policies, the country has made significant progress in elevating its profile as one of the most innovative nations on the continent (Grünwald, 2015). Consequently, a new culture of innovation is permeating society.

Romania’s legal environment has complemented this progress by harbouring supportive policies for innovation. However, some of them need to be updated to reflect current changes to the business environment. Indeed, organisations and services that characterise a city’s innovation systems are dependent on the quality of communication and systems that link their different attributes (Lewis, Ricard and Klijn, 2018). This statement does not only draw attention to the need to understand the role of different actors in the system or their influence in it but also comprehend how people could adapt to a region’s norms and values.

According to the comparative analysis of Bucharest and other cities undertaken in this study, the capital still trails its EU counterparts on the innovation index. Its poor performance means that the effectiveness of existing regulations largely depends on how well businesses adapt to the changing economic landscape and prepare their stakeholders to integrate innovative solutions in their lives. This statement aligns with the literature review findings highlighted in this document, which highlight the important role of the policy environment in nurturing innovation within a specific geographical setting. Therefore, a key step in promoting innovation is to create the right policy environment that would encourage growth, as opposed to stifling it.

Based on the aforementioned statement, there needs to be a heightened level of policy support to power the next phase of innovation in Bucharest. The goal of this policy proposal is to strengthen existing systems of innovation by creating new subsystems of economic integration across multiple cities. Alternatively, the next phase of policy development should bridge existing gaps in innovation and align them with evolving structures of development. These goals are formulated with the acknowledgement that there is no existing awareness of an innovation system in Bucharest. The Romanian government also needs to create new policies that will enhance the exchange of ideas across various firms in Bucharest and within different cities in the country. Particularly, their efforts should be geared towards promoting technological transfer between Bucharest and other cities in Romania. Additionally, it is also important for policymakers to lessen the burden of failure associated with the adoption of new and innovative systems by lowering interest rates for business people seeking financing.

Overall, the policy suggestions highlighted in this document are incremental, as opposed to new, because the goal is to build on the progress made in Bucharest and not erode the gains that have already been realised. Therefore, these policy suggestions should improve the connection between different nodes of information exchange within the wider system of innovation flow in the capital. The proposals will help to activate aspects of the city’s innovative culture that have otherwise been neglected because of the lack of a conducive legal environment to understand the linkages needed to improve the pace of innovation in the city. The European Commission (2020) suggests that such policy proposals need to be adapted to a nation’s systems to create a coherent framework for creating new solutions to perennial business and economic problems. Consequently, there is a need to revitalise existing innovation systems by improving the links and functions of every stakeholder involved.

These goals can be achieved by deliberately creating a conducive policy environment to enhance people’s understanding of systemic thinking and how the same concept can be adopted to spread the benefits of innovation across different geographical spaces. Overall, these policy proposals are designed to address innovation gaps in Bucharest and are intended to create more awareness about them, including how they could be corrected and improved. They are relevant to policymakers who want to assess the strengths and weaknesses of existing innovation systems in Bucharest because they will help in identifying priority areas that require more attention.

Conclusion and Discussion

The insights highlighted in this document show that the growth of the global economy is not devoid of geographical considerations of growth and change. The central place theory plays a pivotal role in explaining the role of cities in enhancing a nation’s economic growth. Consequently, it is applied in this paper to demonstrate Bucharest’s place as the main innovation centre of Romania. Its centrality to the innovation system of the country highlights the importance of understanding geographical factors in predicting economic outcomes because the city acts as a centre for the growth and development of specialised labour that powers innovation across all sectors of the economy. This study has also shown that geography plays a pivotal role in determining the economic outcome of a country. Their relationship stems from contextual factors affecting economic operations in any given location. This statement explains the “human” aspect of innovation, which is responsible for Bucharest’s innovation dominance in Romania and not the technical aspect of its economic performance, which accounts for its low score in the EU rankings.

The implications of these regional differences across the city and region suggest that low technology cities have to depend on high technology cities for their sustenance. This relationship is based on the geographical dispersion of technology and resources. Therefore, there is a possibility that the more skilled people move to cities, regional differences between Bucharest and other metropolitan areas will persist. Overall, spatial differences across geographical regions mean that these variations in performance will continue to shape the externalities of business in the future. By extension, they will also be key sources of competitive advantage as people move to bridge the gap between Bucharest and other cities. This process may be supported through several techniques, such as knowledge spillovers and the spread of specialist suppliers who traverse from one city to another. These insights are important in explaining how cities function, economies prosper and global systems communicate with each other. The findings of this study demonstrate that even as the world experiences a rapid rate of economic development in almost all continents, location matters.

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Summary

The International Journal of Hospitality Management is a quarterly scientific journal that discusses significant issues and developments in various disciplines in the hospitality industry. The journal has been ranked as a Q1 journal by Schimago Journal & Country Rank (SJR) (SJR, n.d.). In 2019, the journal had an impact factor of 6.701, making it one of the most impactful journals in the hospitality industry (SJR, n.d.). The journal was published in the United Kingdom by Elsevier Ltd. This paper critically reviews Breier et al.’s (2020) article titled “The role of business model innovation in the hospitality industry during the COVID-19 crisis”. It analyzes the selected aspects and identifies relevant themes, theories, and study limitations.

Context

Breier et al. (2020) aimed to discover why hospitality firms can successfully recover from a crisis through business model innovations (BMI). The authors claimed that many hospitality industry firms were adversely affected during the COVID-19 crisis. They suggest that BMI can bring new opportunities to increase firm performance and help firms recover from a predicament. The researchers provide little but quality evidence to support BMI, possibly solving the hospitality industry’s current problem.

Literature Review

The article’s literature review is relevant to the study, and it allows the reader to understand its relevance and compatibility with previous research. The authors use recent studies to support the position that BMI can solve the hospitality industry’s current crisis. I agree with the literature review because the surveys are credible (most were peer-reviewed) and focus on the review’s central theme. The literature also supports and justifies the need for the research. The study was justified because the pandemic has affected many hospitality firms worldwide, and BMI is also empirically relevant in the industry. Moreover, the authors claim that research on BMI in the industry is scarce, further justifying the study.

The authors sought to answer two research questions; first, can hospitality firms use BMI to overcome the COVID-19 crisis? Second, what are the drivers of BMI, and what role do stammgasts play in the industry? The survey discussed the relationship between BMI, market turbulence, and firm performance. They postulate that BMI mediates the relationship between market turbulence (COVID-19) and an enterprise’s performance. The researchers hope to contribute to BMI’s antecedent current by highlighting its drivers by conducting this study. The study also contributes to the literature on stammgasts’ role in the industry.

Conceptual Framework

The researchers used a conceptual framework, which provided dictionary meaning and empirical findings to define the identified conceptualizations. The study’s main conceptions were crisis management, innovation, open innovation, and business model innovations (BMI). BMI is described as the insignificant changes in a firm’s operating business model (BM). Arguably, the study’s BMI definition is inadequate, considering that BMI is its central concept. The authors should have expounded on “insignificant changes” and the “business model element” to help the reader fully understand the concept’s scope. A BM was defined as a firm’s structure or configuration that creates and captures value through innovative ideas and technologies, which on their own do not provide any value. Innovations were described as anything that differs from the status-quo or usual business practices that can bring value to the company. I agree with this framework’s contributions; this conceptual framework highlights the relevant data’s scope limit by emphasizing specific variables. It further delineates the definite viewpoint adopted by the researchers in evaluating and interpreting the gathered information. There was no need for a theory because the conceptual framework was comprehensive.

Methodology

Research Design and Sample Setting

The researchers conducted a case study, particularly a multi-case research. I agree with the methodology used in the study because it is appropriate for the survey. A multi-case review is suitable for real-life situations where theoretical knowledge is limited. The authors indicated that theoretical cognizance of the issue was scarce due to little research. The ontological and epistemological assumptions have not been explicitly stated in the study. The researchers purposefully selected six hospitality firms that were adversely affected by the pandemic but showed recovery signs. The sample included one hotel, two bars, and three restaurants that depend on guests for income. This approach helped the authors draw similarities and differences among the selected cases. The chosen subjects had different ages (time between a firm’s creation and the present time in years). The authors conducted two interviews for each selected case: one with the business owner and the other with the stammgast. The interviews were semi-structured, which allow the interviewers to adjust the interview based on the respondent’s answers. The authors recorded the interviews with the respondent’s consent, and the data were triangulated with information from other publicly available data.

Although the study is well-designed, the survey is subject to a few limitations. First, the findings heavily relied on participants’ responses, making them subjective. A study conducted by Tempelaar et al. (2020) showed that self-reported research pieces are subject to bias and can cast doubts on the validity of measured constructs. This survey is particularly subject to such prejudice given that the interviews were semi-structured, which are considered self-reported instruments. Coupled with the fact that there was no randomization or control variable, this study’s findings can be ranked as level IV evidence. Apart from the possibility of bias resulting from the study’s design, the sampling technique is also a drawback. Purposive sampling is vulnerable to bias and is considered to have low reliability. According to Etikan et al. (2016), findings from a purposive sampling study cannot be generalized. Because purposive sampling is based on a researcher’s judgment, it is difficult to determine the sample’s representativeness objectively.

Analytical Methods

The study results were analyzed through a “within-case analysis” and “cross-case analysis.” The participant’s responses were first transcribed, and then each author independently read the transcripts and coded the interviews and archival data. The authors then iterated between data and theory in the coding process. The “cross-case analysis” was done to identify the similarities and differences in the selected cases and find common themes verified by interactive loops.

The analytical tests used were appropriate for the study’s design. Coding was utilized to analyze qualitative data by tagging and categorizing it and distinguishing common themes and relationships. The analytical method is relevant because the data was qualitative, and the authors also sought to identify common themes. The identified common themes were verified by interactive loops, a systematic technique that can decode qualitative data. The loop analysis is methodologically and conceptually problematic, but it offers a practical approach to analyzing qualitative data (Dhirasasna & Sahin, 2019). Although subject to limitations, this study’s statistical methods are useful and justify and validate the authors’ interpretation of their findings.

Reliability and Validity

The study addressed the reliability and validity of their findings. According to the researchers, the survey’s reliability and validity were assured by the fact that they used a multiple-case study and the iterative joint data consolidation and independent coding. The authors argue that because the research was a multiple-case study and used independent coding, their findings are reliable and valid. However, as previously mentioned, the selected research design and sample selection already invalidate its credibility.

Determining this study’s validity and reliability is critical in determining its quality and credibility. Since the measures and tests used to assess reliability and validity in quantitative studies cannot be applied to qualitative surveys, the researchers can use the criteria developed by Forero et al. (2018) to ascertain the qualitative survey’s credibility. According to Forero et al. (2018), a qualitative study’s validity and reliability can be determined through data triangulation, accounting for personal and sampling biases, and validating the participants and their responses (demonstrate participants’ thought processes clarity). Of these measures, Breier et al. (2020) triangulated their data with publicly available information. Also, the cross-case analysis added weight to the author’s findings. Therefore, it can be argued that the study’s findings are valid and reliable due to the data triangulation employed by the authors. I would have used a comparative case study rather than a multi-case cross-study. A comparative case study integrates quantitative and qualitative data and generates better evidence than a case study (Etikan et al., 2016). I would also improve on my sample selection technique to reduce error bias.

Results and Discussion

The study’s results showed that BMI could help hospitality firms to recover from the crisis. BMI drivers are under pressure to change to survive the crisis, time availability, and the role of stammgasts to facilitate BMI initiation. However, time availability is not sufficient enough to initiate BMI on its own. The BMI inhibitors include government support and high liquidity, making the firm want to maintain the status quo rather than change it. The second research question was negated: stammgasts are not BMI drivers. Instead, they can facilitate a firm’s decision to innovate by providing firm owners with the psychological safety needed to initiate BMI.

The researchers integrated these results into the literature review by explaining how these findings align with and support existing literature. The authors use the literature review to point out the agreements and disagreements between their conclusions and past studies. The study confirmed that government support could help firms overcome crises. However, they also identify BMI as a new strategy for overcoming a problem, which is their main practical contribution. BMI can generate firm revenue and help firms to prepare for future crises sustainably. Based on these findings, the authors recommend that hospitality firms adjust their business models continuously. They contribute to the existing theoretical knowledge by proposing a model to help firms survive crises. I agree with this theoretical conceptualization because it is evidence-based; other studies have supported this stance (Schomaker & Bauer, 2020). The researchers argue that a crisis can create a breeding ground for innovation. The need to survive the crisis will pressure a firm to innovate, which will trigger BMI.

Conclusive Critical Reflection

Although this study has methodological limitations, the evidence is convincing and justified. The findings contribute to the practice and research of business model innovation that can influence firm performance during a crisis. It is well-designed, and the conceptual framework is logical and adequately described. I agree with the authors that firms need to innovate to make it through a crisis. This stance is not only because of the evidence supporting it but because innovation is becoming a critical survival tool for business, with or without a problem (Schomaker & Bauer, 2020). However, I would use a different research design and select a different sampling technique to increase its credibility. I would use convenience sampling because the sampling error can be quantified. Alternatively, if purposive sampling is mandated due to circumstances, I would use the expert sampling technique as it has a lower error probability than other purposive sampling techniques (“Purposive sampling,” n.d.). Expert purposive sampling involves using a team of experts to select samples.

Table 1: Summary of the analysis’s concept.

References

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Forero, R., Nahidi, S., De Costa, J., Mohsin, M., Fitzgerald, G., Gibson, N., McCarthy, S., & Aboagye-Sarfo, P. (2018). Application of four-dimension criteria to assess rigour of qualitative research in emergency medicine.BMC Health Services Research, 18, 1–11.

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Schomaker, R. M., & Bauer, M. W. (2020). What drives successful administrative performance during crises? lessons from refugee migration and the Covid‐19 pandemic. Public Administration Review, 80(5), 845–850.

SJR – scimago journal and country rank (n.d.). Scimago Institutions Ranking.

Tempelaar, D., Rienties, B., & Nguyen, Q. (2020). Subjective data, objective data and the role of bias in predictive modeling: Lessons from a dispositional learning analytics application. PLOS ONE, 15(6), 1–29.

Re-Imaging Detroit

If I decided on what to do with the empty space in Detroit, I would focus on Option B: Suburbanize, which implies that old and abandoned houses would be replaced with new and affordable neighborhoods. I defend this choice because it is better than the other two. On the one hand, it took approximately 300 years to build the city and its neighborhoods (Kahn, 2011). That is why it is irrational to free up the space and give it to nature, which refers to Option A. On the other hand, Option C does not seem a suitable solution because building the city of the future requires large investments and innovative technologies. I am not sure that sufficient resources will be available to rebuild Detroit.

This solution is attractive to many people and me, which denotes that the idea will make me want to live in Detroit. Large-scale developers are expected to create new houses that satisfy the standards of other American cities. That is why I think that these neighborhoods will additionally have sophisticated transportation, education, healthcare, and policing systems. People tend to draw much attention to these issues when they select a place to live. Thus, I believe that new neighborhoods in Detroit will be attractive to other citizens and me.

The suggested solution implies both pros and cons that are worth attention. On the other hand, some of the positive aspects have been discussed above. Another significant advantage refers to the fact that building new neighborhoods will create many jobs, which will improve people’s economic conditions. If large-scale developers help their employees purchase new houses more easily, this strategy will contribute to the faster settlement. On the other hand, a significant drawback can emerge if discriminatory principles are used to decide who can get a house in a particular area. According to Young (n.d.), this system was used in the 20^th century, which contributed to tax delinquency and tax foreclosure. It is necessary to avoid these issues to ensure that Detroit will not face the same rebuilding process in the future.

In conclusion, I believe that the suggested solution celebrates the history, identity, and character of Detroit. According to Okrent (2009), Detroit was among the most prosperous manufacturing cities in the US, which became possible because it had a sufficient workforce. Kahn (2011) mentioned that the city population had decreased from 1.2 million in 1980 to 700,000 in 2011. That is why the suggested solution is expected to bring Detroit’s regeneration by providing the city with new citizens who will contribute to its economic growth.

Journal Conclusion

Since Detroit is left with empty spaces, it is rational to utilize a creative approach to find an outside-of-the-box solution. The general suggestion is to bring technology and innovative interventions to make Detroit a smart city. This solution has the potential to create a healthy environment for citizens and build a stronger community. My opinion is based on the information from class lecture slides and outside sources.

If Detroit wants to witness massive development and growth, it is not sufficient to fill in the empty spaces with the same, but new, buildings. The best option is to rely on innovative and technological solutions, and utilizing the experience of other cities seems an effective strategy to cope with the task. On the one hand, cities are considered more effective if they offer different and multi-purpose opportunities for individuals. Suitable examples include London, Tokyo, and San Francisco because they provide citizens with excellent business, tourism, travel, and socializing options (Bateman, 2022). This information denotes that a modern city should develop many spheres to become convenient and attractive for people.

On the other hand, a suitable option is to invest in innovations and sustainability. According to the article by Silver Rail (2020), different cities across the globe succeed in this area. For instance, Singapore impresses with autonomous taxis and an automatic metro network, which makes the transportation system more effective and faster (Silver Rail, 2020). Bangalore, New York, and Seoul are attractive because they invest money into the IT sector, which makes life more convenient and digitalized for their citizens (Silver Rail, 2020). Finally, Amsterdam and Reykjavik are famous for their sustainability activities because they rely on innovative solutions to minimize or eliminate environmental harm by banning gasoline cars and generating energy from hydroelectric sources (Silver Rail, 2020). These findings demonstrate that cities have many opportunities to grow and develop.

As for Detroit, I can offer a specific strategy to fill in its empty space. Firstly, it is necessary to build a particular number of houses for citizens. Secondly, it is essential to create multi-purpose centers that will include business, socializing, and entertainment spaces. Designers should ensure that these centers are famous tourist attractions, which will result in an influx of new people into the city. Finally, city planners should invest money in innovations, technology, and sustainability processes. According to the identified evidence, a suitable strategy is to rely on autonomous vehicles, green energy, and new technology. I believe that this comprehensive approach will allow for breathing new life into Detroit.

References

Bateman, K. (2022). Which are the world’s most innovative cities in 2022. World Economic Forum. Web.

Kahn, H. (2011). Destroying Detroit (in order to save it). GQ. Web.

Okrent, D. (2009). Detroit: The death – and possible life of – a great city. Time. Web.

Silver Rail. (2020). 11 of the most innovative cities in the world. Web.

Young, C. (n.d.). Minimum bids. GooBing Detroit.

Introduction

Most of the indigenous architectural works in Australia was domestic. The architecture involved the construction of shelters and residential camps. There was a variation of the architectural work ranging from temporary windbreaks to shelters. Also, the architecture involved the construction of round houses with roofs made of grass.

The introduction of new architectural designs by the trained architects is a reflection of change and identity. The indigenous social organization played a greater role in the success of the Australian architecture, along with the heritage and the social change of the Australians (Mulligan 2007).

Projects in the indigenous Australia

In the indigenous Australian community, several projects were established in the remote and urban communities. In Australia, Aboriginal stone architecture was part of the projects built in the country. It was a symbol of the engineering structures built in those ancient times.

The structures included stone-walled weirs and canals. Also ovens and ceremonial layouts were constructed under the engineering structures. In some areas, shelters bearing an egg shape were also constructed. This was done to prevent water coming from under the surface due to flooding (Mulligan 2007).

In addition, there was community-based public architecture in which collaboration between the indigenous communities and the non-indigenous communities existed. The architecture involved designing of public buildings. These public buildings were used to account for the relationships among members of the same family.

An example of such a project is the Tjulyuru Ngaanyatjari cultural and civic center. The project is based in Warburton, Western Australia. This project was designed by Insideout Architectures. It bears a reflection of the landscape and the culture in which it was founded. The project functions both as a meeting facility and as a tourist attraction site. Also other projects like the lava-stone structures were constructed in western Victoria.

The availability of basalt stones and rocks within the surroundings enhanced the construction of compound stone structures within the area. The remains of these complex structures have been observed in different regions of Australia. Examples of structures constructed with these types of stones included houses, eel traps and ponds. Other examples include weirs, traps and gates were made from these stones (Foley 2001).

Other types of professions

Besides architecture, there are other types of professions that people can engage in. These professions include medicine, teaching and management. By incorporating medicine in the indigenous Australia community, the health of the people will improve. A healthy society in terms of physical fitness will enhance people to engage themselves into development projects that lead to growth of a place.

Also, the death rates within the society will be minimal leading to an increased population. The teaching profession will help in moldings a society of enlightened people. Education will help the indigenous Australians to approach problems with the right method and be able to come up with solutions with relative ease.

The managerial profession will help in making proper utilization of the available resources. This will lead to minimizing wastage of the resources. The resources also include labor and the available materials. With the proper use of resources, the economy of the indigenous Australia will grow leading to development (Basedow 1925).

To build a professional network, several things need to be addressed first. To start with, there is need to take note of the important issues to be addressed. Also one should make use of the existing ties to strengthen the relationship.

These ties include faculty, friends and family. Joining dominant trade within ones area can also help in building a strong network. Self centeredness should be avoided and people should share the different ideas they have. Finally a follow-up should be made by having the contacts for the members. This will help to keep the members in touch with each other.

Group report

Despite the fact that developing vivacious and sustainable communities is a complicated process, a number of things can be done to enhance the collaboration between indigenous and non- indigenous Australia. This will be in from of a community engagement that involves a more than a proactive approach to sharing information.

Other than just making information available, there should be efforts to proactively make this if information available through widespread consultation and equal participation by all parties involved. The level of involvement for the public should; be increased to the extent that the majority of decision making lie within the public domain.

This will be enhanced by seeking as well as collaborating as much information as possible on management of resources, opportunities for growth and community engagement, social political and economic wellbeing as well as designs, from the public. Collaboration should also be enhanced by involving everyone from the early stages of the planning process. There are a number of opportunities that will enhance community’s engagement.

They include stronger affiliations between communities and local authorities, building a localized spotlight for the planning process, engaging the local community in regional discussion and forums, enhancing collaborations in regional issues , developing a localized focus in solution seeking to local problems , developing all solutions on the philosophy of sustainability as well as involving the state governments in decision making process.

These opportunities will not only enhance collaborations but will also crate the necessary networks for effective all-round participation (Elton Consulting 2003).

Community information sharing conferences will also enhance networking and a closer involvement of all stakeholders (Brun 2004). There is also need to motivate stakeholders to engage in community development programs. Over and above widespread consultations, stakeholders will be motivated through focus group discussion developing of clear shared goals, as well as implementing proposal reached though this focus groups discussions (Rawsthorne and Christian 2004).

Conclusion

My profession has played a crucial role in making designs required for the different structures in the region. These designs can be used to construct different structures such as those built in the indigenous Australia. Innovation has been used to improve the structures build in modern day Australia.

Reference List

Basedow, H.1925. The Australian aboriginal. Adelaide: Preece.

Brun, W. 2004. Community IT Conference. Web.

Elton Consulting. 2003. Community engagement in the NSW planning system. Web.

Foley,D. 2001. Repossession of our spirit: traditional owners of northern Sydney: Aboriginal history. Inc.

Mulligan, J. 2007. Expedition in search of gold and other minerals in the palmer districts, Queensland parliamentary proceedings: Legislative assembly journals. Record No. 33. Brisbane: Government Printer.

Rawsthorne, M. and Christian, F. 2004. Making it meaningful…Government/community sector relations. Research report. Web.

Introduction

Innovation is one of the causal factors of fundamental changes in the livelihood of people in the society. Innovation is a concept that can be applied in different disciplines that govern the nature of life that people live. For instance, innovation has been applied in the development of governance models like the American democratic governance model. This model has played a major role in determining the outlook of different administrations across the world in developing governance. This innovation has influenced the development of freedom among many societies by eliminating some traditional models of governance that hindered the same. It is also apparent that innovation is the main cause of economic growth among people and nations in the world. For instance, the development of innovative business ideas results in the creation of employment, and this subsequently leads to an increase in national GDP. Growth in technology is perhaps the most important field that innovation has played a major role. Innovative technology has changed lives for people across the world. For instance, technology has facilitated the efficient production of commodities that enhance the quality of life for people. Technology has also facilitated faster communication avenues for people. Society needs to embrace innovation as a tool for influencing positive social, economic, and political changes. This paper looks at innovation at the micro-level, meso-level, and macro-level.

The evolution of human societies and the role of innovation

Innovation is one of the factors whose interplay with economic, social, and political elements enable some societies to dominate others. Jared Diamond talks of proximate and ultimate causes to describe different factors that are associated with the development of human history. Diamond addresses proximate causes as the immediate causes that influenced the historical outcomes of the society (Haberman 2014). In his book Guns, Germs, and Steel, the proximal cause of the attainment of historical success was their possession of better fighting weapons and steel. Ultimate causes, on the other hand, are the factors that influence the existence of proximal causes. In Diamond’s book, the ultimate factor was the geographical location of the Europeans. The location facilitated their innovation to develop guns and to process steel into tools that facilitated agricultural production. Diamond believes that the Europeans came to dominate other societies because of the aforementioned proximal and ultimate causes (Jared 2010).

The role of innovation in the development of military, economic, and cultural superiority was the facilitation of better weapons, reliable economic activities, and the acquisition of better knowledge to defeat other societies (Smith 2015). Diamond’s conclusion is valid because the innovative power of a society is shaped by the environmental challenges and opportunities available. Technology is another proximal cause that gave the Europeans an edge over the Indians, and it was a factor of the geographical conditions facilitating adequate resources for agriculture. The ultimate causes facilitate the existence of proximal causes that shape history for societies. This means that the ultimate causes of change in a society determine the nature of proximal causes of the change. For instance, with the availability of fertile agricultural land and steel, the Europeans could become innovative and develop farm tools to enhance their ability to produce food in surplus. The availability of a constant supply of food would increase population; thus, a stronger army, which would also use steel to create potent weapons like guns (Jared 2010).

Innovation and regional development

The interplay between innovation and entrepreneurial skills results in the development of economic superiority among nations. History has revealed that nations that have innovative citizens that are aggressive in entrepreneurial ventures are more economically liberated than those that have innovative societies without entrepreneurial aggression. For instance, Singapore is one of the nations that has demonstrated the presence of highly innovative citizens and administrations following the national developments that it has witnessed over the past several decades. It is, however, apparent that despite the high levels of innovation that the nation has portrayed, it is not as entrepreneurial as other regions like Hong Kong. Lee Kuan Yew’s sentiment that Singapore is not as entrepreneurial as Hong Kong meant that Singapore does not have a high level of diversity in entrepreneurial activities as seen in Hong Kong. The people of Hong Kong are highly innovative in the business field, but Singapore is inclined toward a discrete number of productive industries. The UAE and Singapore have many similarities and differences. The two regions have been actively engaged in the reclamation of land that was initially covered by water.

The UAE and Singapore have used innovative ideas to expand their land to facilitate settlements, but the UAE has seen more innovative ideas in the construction industry. The entrepreneurial character of the two regions is also different, with the Singapore portraying a more aggressive character in this front. This is evidenced by the current GDP of the UAE, which stands at $402 billion, compared to $298 billion for Singapore. The GDP growth rate of the UAE is at 5.20%, whereas Singapore has a growth rate of 3.85% (United Arab Emirates vs Singapore 2015). This does not mean that the UAE is doing better than Singapore economically because the GDP per capita growth in Singapore is twice that of the UAE. Singapore also has a lower unemployment rate than the UAE, which indicates that the nation has a higher entrepreneurial rate than the UAE. The UAE may also be compared with Japan based on innovation in the construction industry.

Organizational-level innovation

The Road and Transport Authority (RTA) must continue enhancing the quality of transportation services in the UAE; hence, it needs to solve the existing issues and future issues before they occur. The organization needs to enhance its technological capabilities through benchmarking and outsourcing. Benchmarking entails visiting other road and transport organizations in developed nations to learn about the most modern ways of solving transportation issues. Outsourcing labor from countries with comprehensive road transport systems like China should be applied to give the employees a different perspective of tackling challenges. The organization can also enhance the innovative quality of its human assets by contracting experts from different parts of the world to provide training and development programs on innovation. The organization also needs to assume the concept of rapid iteration, whereby it will always try to make an idea work before moving to the next one. Building on existing ideas to make them better can result in innovative developments of the organization. The management function of the company should also start creating a sense of urgency in all projects to provoke the employees to enhance their innovation power (Nineteen ways to boost innovation in your company 2015). These recommendations should be implemented by the human resource management and the leadership function of the organization. The human resource manager of the company should be actively engaged in the development of training and development programs for the employees. The leader of the organization should look at developing an organizational culture that fosters innovation (Smith 2015). The company should develop a quarterly evaluation for short-term goals, whereby the management will compel the employees to complete the tasks within three months.

Individual-level innovation strategies

Universities can effectively enhance the innovative traits of individuals through the manipulation of the lens through which the individuals view the modern world. It is apparent that universities across the world have been struggling to nurture a diverse population of students, and the most likely outcome is the provision of general education by the universities. Enhancing motivation requires the universities to increase their motivation to become problem solvers rather than mere survivors in the society. By changing student’s outlook on the world, it is possible to lure them into undertaking the implementation of their innovative ideas to solve some of the global problems. Enhancing innovation for students is as simple as provoking the students to have the courage to change the world. Empowering the students is a factor that has been missing in many educational institutions; thus, it has been difficult for universities to make any great impact on the innovation traits of students (Innovative teaching enhances learning 2013).

I believe that before joining the graduate school, I was moderately innovative because I had developed solutions for basic problems at home. I expect to be highly innovative after my graduation, and I aspire to be a part of the innovative problem-solvers after employment. Measuring the innovative quality of an individual should be based on the merit of his or her ability to repeatedly meet goals that exceed the capabilities of the available resources (Almquist, Leiman, Rigby & Roth 2013). To make me even more innovative over the next several years, I need more exposure to the modern world. Understanding the current challenges facing the global society will provoke my mind to develop ideas that can potentially solve the challenges. I also need to be conversant with the newest technology to develop new perspectives on solutions for different problems using technology. This should be actualized by the end of the graduate program.

Conclusion

Change in society is influenced by the development of new ideas to tackle different challenges that people face daily. Innovation is one of the determining elements of competitiveness in the society, and it has enabled some communities to dominate others in different aspects of life. From a macro-level of entrepreneurship, the incorporation of innovation enhances the economic power of a nation. The development of different innovative ideas for economic liberation enhances the quality of life for the people. Innovation is also a requirement for success at a meso-level, which entails the development of viable ideas to tackle organizational challenges. Innovation at the individual level can be attained through nurturing people, but the trait requires the involved individuals to be highly motivated and empowered. Innovation shapes the history of a society by introducing fundamental changes in their economic, social, and political fronts.

List of References

Almquist, E, Leiman, M, Rigby, D & Roth, A 2013, Taking the measure of your innovation performance. Web.

Haberman, M 2014, Why it is important to understand proximate versus ultimate causes in HR. Web.

Innovative teaching enhances learning 2013. Web.

Jared, D 2010, Guns, Germs and Steel, W.W. Norton, New York.

Nineteen ways to boost innovation in your company 2015. Web.

Smith, D 2015, Exploring Innovation, McGraw-Hill Publishing Company, New York.

United Arab Emirates vs Singapore 2015. Web.

Introduction

Schumpeter’s theory provides that the leading role of an entrepreneur in the economic field is the introduction of innovations from which the reward is gaining profits. The model stipulates that entrepreneurship plays a decisive role in fiscal development and that successful creativities are the only way to achieve such goals as financial stability within an organization. It explains that invention could occur in such ways as launching or upgrading a product, introducing new production methods, acquiring advanced supply sources, and bringing unique business structures (Sweezy, 1943).

The business approach was developed by Joseph Alois Schumpeter, an Australian political economist and foundational contributor to the topic of development and technological advancements. The idea is based on the more elaborate theory of monetary growth, which focuses on entrepreneurship and its role in industrial empowerment with innovativeness as the linkage. In this regard, Schumpeter worked towards defining and explaining the change in a perspective related to its significance in the entrepreneurial specialties.

Causal Mechanism of the Theory

The theory implies that fiscal restructuring in the capitalist commercial world is the main reason for business fluctuations or increased investments. It remains a prime force in the economy and influences the analysis of modern business developments. Introducing new products and processes plays a key role in restructuring competition among traders, thus regulating sales levels. Furthermore, it affects the creation and redistribution of business principal aspects within the gradually adjusting economic space. Schumpeter wanted to show that market influence derived from creativity would outperform the unseen price rivalry.

In terms of concepts, Schumpeter’s invention and entrepreneurship idea is essential and still evolving. He believed that technical advancement often generates temporary monopolies that make for abnormal gains, which are easily undermined by competition (Estrin et al., 2020). By impacting adjustments within the economy, innovations determine the direction taken by business institutions and nations. The analysis in terms of macro-level theories is underpinned by its relative effect of development on organizations’ profit achievements. In this way, it helps predict the steps that can be taken to stabilize their overall business gain, thus limiting fluctuation in their transaction.

Principles on which the Theory is Based

Schumpeter applied principles, which are the foundation for the change postulation. First, he based it on the code of entrepreneurial innovations, which leads to material growth when successfully established. He bases it on a circular flow system that runs through the same channels despite principle structure changes. The theory has evolved since changes in design and the development of new products and processes have occurred. Innovation is no longer based on individual identities but instead on the involvement of various actors. This necessitates cognitive skills that maximize the dissemination of creativity and, thus, the perception of transformation that leads to entrepreneurship (Cozzi et al., 2021).

Previously, a firm’s ability to engage in routine innovations is majorly dependent on the market power a firm poses. Schumpeter assumed that the economy is constant and does not undergo fluctuations. He believed that the firms working in a system are in an equilibrium competitive state.

Strengths of the Theory

Innovation is the engine that drives economic development in an economy. Entrepreneurs, through inventions, bring new insights to the business world, leading to diversification. The innovators assist in creating a favorable market structure that promotes sales, thus increasing profitability. The theory insinuates that adjustments in investments are not entirely independent of capital and the firm’s innovativeness. Business upheaval is no longer generated by a single individual but by the combined effort and cooperation of many actors aiming to bridge a business gap.

It offers new explanations about the positive and negative effects of inventions, which is critical in determining a business plan’s future. Innovations may also negatively influence a firm following that when firms try to adapt to new trends, they invest heavily to outsmart their competitors. Still, when the new fields are over-flocked, it backfires on them, leading to impeccable losses (Śledzik, 2013). Schumpeter changed an entrepreneur’s view as just the organizer and production manager into any party that revolutionizes production.

Limitations of the Theory

Despite being accepted and applied in the modern economy, the theory has shortcomings and suffers the following criticisms; It is difficult and impractical to undertake an empirical assessment of Schumpeter’s reorganization theory because his arguments are based chiefly on sociological than monetary considerations. Schumpeter’s approach is fundamentally similar to the over-spending approach. The main difference in the theory is the source of volatility in investment when the economy is steady. This hypothesis often ignores other causes that affect variations in fiscal activity. Change is not the only factor that causes socio-economic fluctuations; it is only one amongst many.

Given that Schumpeter’s economic growth theory avails a vivid analysis of the theory’s concept, it is required to critique the innovative socio-economic industry (Śledzik, 2013). The type of empirical phenomena to which the theory applies is skewed toward broader ventures with a competitive outlook on potential demands and competing in growing markets. Although it has such limitations, the theory is still quite effective in determining pecuniary fluctuations.

Alternative Theory

The proposed general theory of innovation and innovativeness’ was created by Dennis Stauffer. It describes the model as a cycle in which a source of potential possibilities is investigated and evaluated to see how they perform and, if so, whether an attempted invention has any effect and generates value, allowing for fresh insights. Innovation has cycles that propel it while others object to it; thus, treating innovation as just another business process is misguided. This model is intended to evaluate innovativeness across various disciplines, and environments, not only as a business activity or an economic pattern.

Dennis Stauffer’s proposed general theory of innovation and innovativeness provides an explanation that proves the urgency of understanding and applying the innovation concept in business firms (Stauffer, 2015). Aspects of this concept, such as the innovation cycle being a distinguishing feature of complex adaptive systems or the fact that this cycle offers a valuable distinction between two types of complex adaptive systems, still need further investigation.

Reference List

Cozzi, G., Pataracchia, B., Pfeiffer, P. and Ratto, M. (2021) ‘How much Keynes and how much Schumpeter?’, European Economic Review, 133(1), pp. 1-11. Web.

Estrin, S., Korosteleva, J. and Mickiewicz, T. (2020) ‘Schumpeterian entry: innovation, exporting, and growth aspirations of entrepreneurs‘, Entrepreneurship Theory and Practice, p. 104. Web.

Śledzik, K. (2013) ‘Schumpeter’s view on innovation and entrepreneurship: management trends in theory and practice’, University of Zilina & Institute of Management, pp. 89-95. Web.

Stauffer, D. (2015) ‘Valuable novelty: a proposed general theory of innovation and innovativeness’, International Journal of Innovation Science, 7(3), pp. 169-182. Web.

Sweezy, P. (1943) ‘Professor Schumpeter’s theory of innovation’.The Review of Economics and Statistics, 25(1), pp. 93-96. Web.

Smart City: Future Urbanism

The smart city concept is becoming increasingly widespread in both scientific literature and social media and covers a broad range of urban phenomena. This topic is particularly relevant because of increasing urbanisation. Kitchin (2014) provides two basic approaches to the vision of the smart city. One of them implies the use of information and communication technologies (ICT) along with entrepreneurship and creativity to promote an urban economy. The second approach assumes an extensive introduction of technologies into the fabric of cities to improve the efficiency of urban management. Other researchers also emphasise the close relationship between the idea of a smart city and the use of ICT. Nonetheless, the content and potential of this concept are not limited to technological development exclusively. This paper explores and analyses the innovative aspects of a smart city, including both technological advantages and peculiarities of social, environmental and economic spheres.

Smart Technologies: Internet of Things, Smart Buildings and Mobility

Digital and information technologies are already beginning to play a crucial role in the social, administrative and public processes of modern megalopolises and cities. These include but are not limited to social media, artificial intelligence, web commerce, online education and digital government. According to numerous estimates, the integration of technological innovations into the daily routine of urban systems will continue to increase (Albino, Berardi & Dangelico 2015; Plageras et al. 2018; Silva, Khan & Han 2018). This is particularly relevant to the Internet of Things (IoT), which has “resulted from the evolution of conventional networks that connect zillions of connected devices” (Silva, Khan & Han 2018, p. 697). According to Mehmood et al. (2017), IoT is a modern communication paradigm that is designed to create an Internet environment for connecting multiple digital devices online. The application of this development is intended to stimulate a series of innovative shifts in the urban setting.

This is primarily concerned with smart infrastructure and buildings, which imply an inseparable connection with ICT. Researchers state that the future infrastructure will consist of two layers: physical and digital, which is supposed to make it smart. (Mohanty, Choppali & Kougianos 2016). The ICT will enable the simultaneous data collection and management of multiple urban systems, ranging from water and energy supply and transport hubs to hospitals, government departments, business centers and educational institutions. A substantial part of the infrastructure components of the urban environment will be represented in the digital space, and thus the city will have its digital duplicate.

The IoT will enable this duplicate to be used for practical purposes. Mehmood et al. (2017) categorise IoT-based smart city applications into “personal and home, utilities, mobile, and enterprises” (p. 16). The first group refers to the management of smart home devices, electronic health care, through which physicians will be able to monitor the patient’s condition remotely, citizen interaction with urban facilities using a digital device. Utilities and enterprises IoT applications provide more efficient monitoring, data collection and management of household maintenance processes and facilities within the working environment, respectively. Mobile applications are aimed at implementing smart logistics and transportation by accounting for all traffic objects connected to the network.

It stands to mention that mobility in smart cities will acquire special features. According to Benevolo, Dameri, and D’Auria (2016), the following corresponding priority challenges have been noted in the literature: “reducing pollution, reducing traffic congestion, increasing people safety, reducing noise pollution, improving transfer speed, reducing transfer costs” (p. 15). These issues will be addressed not only through technologies and data analysis that improve logistics management but also through innovative environmental solutions that include pollution reduction and transport facility modification. Alternative types of public transport, car-sharing, bicycle lanes are already being implemented in developed cities.

Building as a fundamental element of urban infrastructure is also subject to a range of innovative improvements. There are already attempts in the literature to design and simulate a smart building. Plageras et al. (2018) propose a topological architecture scheme of a smart building, based on comparative analysis of relevant literature (p. 352). The proposed smart building design includes multiple sensors that analyse temperature, motion, light and moisture information, as well as a cloud server that stores that information. Potentially, based on these data, artificial intelligence can manage specific building characteristics independently. In this way, the building can eventually become a self-governing system.

As ICT will consolidate and manage a variety of information, both personal and public, to improve the wealth and functionality of smart cities, the issue of data security and privacy will become particularly acute. Researchers propose to use the blockchain technology to address this problem. According to Biswas and Muthukkumarasamy (2016), the application of blockchain to smart city devices will create a unified framework within which all connected devices will be able to communicate safely in a distributed environment. A blockchain is a distributed database where information is stored as a sequence of interconnected units on different devices, which makes it very complicated to modify and access it. Thus, technological advances offer not only innovative improvements, but also provide intelligent solutions to potential problems.

Green Spaces and Environment

The environment in urban space is already becoming a major concern. Researchers note that “the urban ecological system is one of the essential elements for human survival in cities” (Anguluri & Narayanan 2017, p. 59). It bears mentioning that there is scientific evidence that the natural environment in cities helps people cope with various psychological problems, such as anxiety and stress, and improves their sense of wellbeing (Anguluri & Narayanan 2017, p. 59). Thus, the reduction of pollution and the improvement of the environment in smart cities appear in the foreground.

Smart cities greening measures are divided into conserving existing urban green spaces and creating new ones. The urban ecosystem in a smart city is intended to be an interconnected network of green and blue spaces, which is extended to the entire city. It may include urban parks and reservoirs, urban woodlands and reservations, street trees, flowerbeds and shrubs, rooftop gardens, domestic gardens. In many respects, the responsibility for the city’s landscaping is shared between the state authorities and the personal commitment of citizens. Also, maintaining the welfare of urban nature requires both governmental and community involvement. Smart legislation will have to deal with air pollution and urban littering. Currently, many advanced citizens, primarily from western cities, are switching to separate garbage collection, electric transport and environmentally friendly products. Smart cities will support such initiatives with specially designed infrastructure.

Moreover, the environmental policies of smart cities should also address global environmental challenges. It is generally believed that they should be managed at the federal and international levels. Trindade et al. (2017) state that the “spread of interest in smart cities and adjacent concepts” is directly related to such factors as “climate change” and “scarcity of natural resources” (p. 4). Smart city residents should have environmental awareness, and global ecological problems should become personal and urban concerns.

Smart Citizenship and Lifestyle

Despite the widespread introduction of ICT and innovative solutions regarding infrastructure and environmental conditions, the underlying meaning of the city’s existence is the wellbeing of its citizens. According to Albino, Berardi and Dangelico (2015), “smarter cities start from the human capital side, rather than blindly believing that ICT can automatically create a smart city” (p. 11). Modern approaches to education, politics, entrepreneurship and other social areas of urban life will be a key indicator of the city’s smartness.

It is assumed that a more participatory culture will characterise the citizenship of smart cities. At present, urban people are more educated, informed and enthusiastic about expressing their position. According to Angelidou (2015), the “knowledge now circulates and is produced collectively”, and “city’s people” successfully create “new ideas, products, strategies and theories, either individually, or in collaboration within social networks” (p. 101). The application of the competence and initiative of the new generation of urban residents will require the creation of new forms of direct participation and decision making.

A particular problem of the present time is that, despite the vast consumer-oriented choice of products and services in the market, there are rather few forms of citizen participation in political processes. Cardullo and Kitchin (2019) note that along with technocratic and market-oriented governance, there is a lack of comprehension of possible options for effective civil cooperation and regulation (p. 820). The emergence of forms of direct democracy may involve a particular transformation of the lifestyle and characteristics of communication between people, including their increased digitalisation and fellowship. Researchers note that “the neighbourhoods can be considered an urban sphere of relations and mutual assistance, where the private coincides with the public space” (Rassia & Pardalos 2015, p. 29). Thus, it is possible that in the future smart cities will consist of smart neighbourhoods with their particular autonomy.

Conclusion

Objectively, the development of smart cities is significantly influenced by ICT, including the IoT, and by the innovative shifts, they bring. Nevertheless, the evolution of the urban environment of the future depends to a large extent on the solutions to environmental problems and on civic awareness of citizens and their efforts. The smart city concept, therefore, includes both the implementation of technological innovations and a more conscious approach to urban life.

Reference List

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