Why is innovation important?

The management consulting firm McKinsey reports that 84% of executives say that their future success is dependent on innovation. From an organizational perspective innovation allows organizations to stay relevant in increasingly competitive markets. Resolving critical problems depends on new innovations. As well, taking advantage of emerging opportunities requires innovation.

Innovation is also important from a societal standpoint. Here's Andew W. Wyckoff, Director, OECD Directorate for Science, Technology and Innovation:

Innovation has always been a foundation of our economies. From the invention of the wheel to the Industrial Revolution, via air transport, the internet and medicines, innovation leads to change, progress, and hope. In today’s world, which is still reeling from the crisis and looking for new, stronger, more inclusive and sustainable ways forward, policies for fostering innovation are more relevant than ever.

Innovation is more than about new products; it is about the creation and diffusion of new processes and methods as well. Innovation can lead to new businesses, new jobs and cleaner environments…. it is also vital for addressing deep social and global challenges, like ageing, resource scarcity, disease and climate change. Innovation spurs education, skills and wellbeing throughout life too. (Source)

In recent years there has been an increased focused on social innovation with practitioners applying the know how of innovation to the world's most persistent and intractable problems.

More articles and resources

Innovation Creates Prosperous Societies

Why Innovation Is Crucial To Your Organization's Long-Term Success

5 Important Benefits of Innovation in Business