The Importance of Innovation – What Does it Mean for Businesses and our Society?

According to McKinsey, 84% of executives believe that innovation is crucial to their success. While innovation may seem like a buzzword, its importance is multi-faceted. Innovation is not only necessary for organizations to stay relevant in the competitive market, but it is also a vital component of economic growth. New innovations are especially important for developing countries. This article delves deeper into the significance of innovation from both macro and micro perspectives. From a macro perspective, innovation plays a significant role in solving important societal problems and enhancing society's capabilities. The outcomes of innovation on society include economic growth, increased well-being, communication, educational accessibility, and environmental sustainability. On the micro-level, innovation is critical for competitive advantage, maximizing ROI, increased productivity, and overall positive impacts on company culture.