How to Win the Battle on Innovation?

Abstract

To win the battle on strategic innovation will be the biggest challenge of the twenty-first century for China, the USA, and the EU. Although China is emulating itself towards an innovative economy, the innovation battle cannot be won by central planning and control. If we look at the strategic innovation issues of the twenty-first century, there are at least ten major issues each with their own dynamics and challenges. Although China, the USA, and the EU each have a head start on one or more of these issues, none of the contenders has a decisive advantage yet. The Global Strategic Innovation Index shows the different positions of China, the USA, and the EU. But foremost, this index demonstrates the huge untapped potential of strategic innovation each of the countries can still exploit. It will indeed become an eternal process of emulation on the level of countries, regions, industries, individual firms, and individuals and policies. Leaders from governments and industries will have to pick up the challenge of strategic innovation and create their own tailor-made solutions fitting to their history, culture, future world needs, and ambitions. The winner will be the one which knows its weakness and strength in a changing world with changing counterparts and be able to renew itself continuously.