Innovation: buzzword or road to economic strength?

Why has Malta ranked last on the European Innovation Scoreboard (EIS) 2005? This is a question the Maltese government, public and private institutions, regulators, entrepreneurs and the education institutions should place high on their agenda for 2006, since it brings forward the weaknesses that need to be tackled on this island; starting primarily from our education sector to Research and Development (R&D) initiatives to recognising the important innovation drivers and barriers in order to create a platform for innovation potential.

It is important to note that the road to economic fortitude through innovation is not solely the government's responsibility. Innovation is about collaboration and networks. Everyone should be involved in the decision-making process.

Confusion often "obscures" the exact meaning of the term "innovation". In its broadest sense, the term originates from the Latin innovare, meaning "to make something new". Essentially, innovation is a process of turning opportunity into new ideas and turning new ideas into a product or service that can be adopted by society as a whole. Innovation is a core process concerned with renewing what the organisation offers and optimising the way it generates and delivers its output.

Innovation is also very much about people - about creating a culture where innovation can flourish. Empowering people to innovate is one of the most effective ways for leaders to mobilise the energies of people to be creative. A strong, creativity-oriented culture greatly enhances the prosperity of innovation. An organisation that has a culture based on openness and sharing, teamwork, motivating and engaging people and embedding knowledge management activities in the day-to-day business processes, internal systems and structures will stimulate innovation.

Why do you think innovative technologies, products or services often come from smaller newcomers rather than giant companies? This is due to the simple fact that the smaller newcomers have a culture that stimulates innovation rather than one that is ridden with political in-fighting and bureaucracies.

If one peers "through the looking glass", beyond the issues highlighted by the EIS, one would recognise one of the major innovation pitfalls - bureaucracy and over-regulation - a malady that affects Malta's government and industry.

The Prime Minister, Lawrence Gonzi, has stated that Malta needs to adopt a culture of innovation. He has also admitted that "over-regulation is indeed plaguing the country" (January 16). So if we live, work and study in an over-regulated society that is ridden with bureaucracy, how can we all work towards creating a culture of innovation? The government needs to lay out the "innovation foundation" for private and public companies to innovate and compete in.

You might ask, "Why Innovate?" Innovation provides a source of competitive advantage, whether this comes from product or service improvements, new technologies or even a radical innovation that could change a market and society. It is about outperforming the competition and delivering compelling new products and services. Innovation also affects the organisation in a number of ways. A company with a creative culture and a motivated workforce sends a positive message to the outside world and attracts the best people. Innovation spurs innovation.

At the very moment, innovation is simply a buzzword here in Malta. The government, regulators, public and private companies, entrepreneurs and the education institutions on the island should come together and change this buzzword into an economic fortitude, by increasing innovation awareness and by adopting a more open innovative culture.