The twenty-first century started with the excitement of the Global Knowledge Based Economy and industrial innovation being accepted as the major tool for improving the knowledge economy. New measures for innovation capacities and capabilities are designed based on industrial factors, technology production and utilization. These measures are effectively used by International Organizations and are accepted globally since they were only improvements on the classical development tool, economic growth.
Starting with Seers and Stiglitz, an enhanced definition of development is made, based on social factors like inequality, rate of poverty, rate of unemployment. Seers states in 1983 that, no developed country has the interest to work on these concepts and the less developed countries have difficulties in accumulating the data. After having lived a quarter of a century with those facts, the Globe is sharing the similar economic concerns with the economical crisis. Hope created by the targeted results of industrial research and development is not sufficient to recover. It is observed that the innovation has to be used to redefine the systems, to reduce the managerial gaps, to reduce unemployment, poverty and inequality.
There are lessons to be taken from the success of national innovation systems in East Asia which strengthened the role of state. As Singh states, intellectual property regimes enacted by multinational companies have been restricting the national power of the developed countries and had proven adverse effects particularly for innovation in least developed countries. Direct innovation assistance for the small and medium companies in China has created a new huge economy. These have been recorded as the initial outcomes of the knowledge economy.
Heading the first tenth year in this century there is an unavoidable need for innovation to be used in the development of the globe. Having stated this belief there is a need for creativity and innovations in
Redefining the roles to be shared by the state and enterprises.
Creating new perspectives in development that would be shared among the developed and less developed countries.
Establishing new governing globalization replacing institutions like WTO.
Spreading the research and development culture to the energy, health and finance sectors with a new focus on systems and services.
Improving the transparency and ethical business implementations by new regulations.
Innovation has always been used to make life easier for the human being. With that valuable aim, improvements in the instruments, tools and intelligence will be continued. Now it is also time for a look into existing systems to make solutions in health, education, social participation easier. Development is redefined to include social capital and innovation is to be used to improve social capital as well as tacit capital. Developed countries are expected to realize the new dimension and collaborate with other countries for the global objectives.