Innovation

It Was Bad News.

On the innovation barometer we are faring very badly. There is less innovative momentum in Malta than anywhere else in the EU.

A way of life

It is bad news. Innovation is the foundation on which the operation of our economy is to rest. It is the one important ingredient that determines our economy's competitiveness. We can be the most intelligent. We can be the most efficient. We can have zero deficit. We can be the most virtuous.

If these attributes are not funnelled into a process that generates ideas and pushes them through a transformation process that results in new methodologies and new saleable goods and services, then we are condemned to becoming a backwater of a rejuvenated block.

Innovation has to be a way of life. It is not a single activity but an ongoing process. It must pervade our system, government, political environs, national institutions, the public sector, the bureaucratic set-up, the productive sector, our NGOs.

It must encourage the practice of making decisions based on an informed understanding of the need to change. It must be geared to motivate the younger generation to always think innovation and to be entrepreneurial.

Fear of failure

All the forces in the country must push this culture. There must be a 180-degree attitude change in some cases. The conservatism that surrounds some institutions must give way to a wide-eyed search for new concepts. The opportunism that motivates the political harangues, criticism and attacks must give way to realism, objectivity and high-mindedness.

The inertia that blocks the bureaucracy must give way to a sense of partnership with the productive sector. The ambiguity that exists in government structures must give way to a clear, candid direction.

Innovation means doing something new, something that may fail. If people are afraid of failing because they would be dragged into a political scandal or because they will be chastised by their regulation watchdog, they will not innovate. We must remove the fear of failure.

The productive sector

The productive sector must understand that introducing new and improved products to the local and global market faster is vital for the continued well-being. Their resources are limited and therefore they must restructure their operations, sometimes shifting them from their current use to defray customary costs that could be cut or to support redundant practices that can be aborted to the generation of innovative activity.

They must be assertive in the need for such efforts and should persuade financial institutions and unions to support such initiatives.

Unfortunately with all the floral verbiage coming from these two pillars of our social and economic milieu, their actions run counter to what the country needs.

They must be aware of the regulatory changes in the making, not only to give input on possible negative results on their operations but also to assess the new opportunities that these changes may be heralding.

The more aggressive enterprises will attempt to influence public policy and the regulatory structure to speed it up.

If this is done propertly, more products will come onto the market faster and at a more competitive price. This brings solidity to the company, comfort and gain to its employees and energy to the country's economic effort. If it is done badly, then market windows are lost and the way is opened to the competition to fill the vacuum created. The result is the weakening of the company, instability to the employees and economic deceleration.

Opaque, myopic, inert bureaucracy is poison for innovation. The prospect of a Calvary to climb in a process to get any new idea on stream is enough to deter many from starting anything at all. The pitfalls, mines and traps set on the way destroy many potentially good initiatives.

Regulators

Misdirected regulators are the executioners of new initiatives. The good regulators, those who are secure in their knowledge of the sector under their jurisdiction, those who are objective, work with their constituents and lead them through the process to ensure the correct understanding of the intricacies of the framework, and to properly prepare the applicant for a hapless implementation of his project. This while safeguarding the interest of the country and the consumers.

The bad regulators, those who are insecure and cannot interact with their constituents because they would be found wanting, sit on their high horses, issuing dictates and seeking comfort in the status quo.

The government

The government must make this change the cornerstone of its activity. This they must do through proper focus, adequate support and proper co-ordination.

There must be innovation within Government itself. They must bring themselves to put innovation at the top of their priority list with a precise definition of deliverables and a definitive determination of accountability.

Innovation requires new ways of thinking and new skills. As with any new set of skills, innovation competence develops over time while working on real projects. This is an investment that Government must sponsor.

Enough time-wasting

We have taken the first steps but more needs to be done and it must be done now. We must accelerate this process without further delay. The process of innovation should include all genders, ages and ideologies embraced by all stakeholders.

Having an effective system that captures ideas and engages people in developing, modifying, enlarging and evaluating them is imperative for our development and the revival of our economy.

jd@dbms.com