An Analytical Look at Innovation in Poverty, Unemployment, and Slow Growth

Abstract

Technical innovation systems research has been consistently conducted for the past two decades. Consequently, it has evolved into a specialized domain where novel methodologies are always being developed. The importance of understanding this concept stems from the productive sector's aspiration to explore new markets and possibilities. Additionally, a comprehensive understanding of it is necessary for the formulation of government policies that promote economic growth, employment, and income. Although attempts were made to comprehend innovation systems as socio-technical systems, there was a failure to accurately grasp the dynamics of global growth. Instead, the focus was placed on devising methods to enhance competitiveness and explore untapped markets. This concept, which asserts that only good microeconomic results result in beneficial macroeconomic effects, has been marginalized. The intricate and innovative perspective on the correlation between urbanization, expansion, technological advancements, and macroeconomic structural shifts has been disregarded. This paper aims to examine and analyze several issues related to this topic. Firstly, it investigates the impact of the deceleration of urban population growth on the utilization of productive capacity in various important sectors. Secondly, it explores how changes in the composition of products, resulting from the saturation of urbanization processes, influence the behavior of productive units. Lastly, it examines the effects of shorter product lifecycles on income distribution. The comprehensive viewpoint is valuable for comprehending the worldwide context in which socio-technical systems are established, as well as the difficulties faced in evaluating their ability to mitigate labor and poverty issues.

Keywords- Analytical Look at Innovation in Poverty, Unemployment, and Slow Growth