The Key Concepts in economics Assignment Example | Topics and Well Written Essays - 750 words

The Key Concepts in economics - Assignment utilizationThe main points included in the article (Porter, 2015a) are4. The innovation done government and corporate funded R&D have generated large revenue streams. How perpetually, the beneficiary organizations have not shared the funding bodies in profits and reinvestment in R&D has been limited.5. Since corporations are moving away from research spending, they tend to vitiate innovative start-ups from small businesses. Scientists and universities have also been encouraged to commercialize innovation funded by taxpayers bills (Porter, 2015a).Investment in R&D sector powers technological innovation, which helps to optimize the use of existing resources and capabilities, creates jobs and improves life-time standards. It enables sustainable economic growth provided that there are constant returns to the R&D sector. Innovation through research and development therefore has a positive correlation with per capita GDP in both the developm ent and substantial mans. However, it has been found that large markets encourage innovation through R&D, while the rest advantage from their knowledge stock and spill-over (Ulku, 2004). This allows emerging markets to grow faster by embracing existing technologies, while developed markets experience periods of stagnation due to foreign competition and limited funding directed towards R&D. The ever increasing restrictions on economic activities, such as environmental protection regulations, in the developed world also slows down the progress in terms of GDP. However, aside from poor regulations which can lead to spare costs in R&D, many regulations are aimed at social welfare initiatives usually not captured in the GDP measurements. Thus, the GDP growth figures in such contexts can often be mislead (The Economist, 2013a). The innovation driven boom and bust may remain invisible in GDP measurements and sometimes even reveals its shrinking. For instance, the spending of a person on telephone calls