Innovation has long driven advances in productivity and economic growth. While it is true that the contributions of innovation have not only been economic since innovations in industry have liberated workers from difficult and dangerous tasks through automation, it is also true that much of the thrust and focus of efforts to mobilize innovation have focused on economic objectives. However, this is changing as entrepreneurs, firms and public research actors recognize that modern economic growth must go hand in hand with societal progress. Innovation is often defined as the process of translating an idea or invention into a good or service that creates value or for which customers will pay. In order to be called an innovation, an idea must be replicable at an economical cost and must satisfy a specific need. Innovation involves deliberate application of information, imagination and initiative in deriving greater or different values from resources, and includes all processes by which new ideas are generated and converted into useful products. In business, innovation often results in ideas that are applied by the company or industry in order to further satisfy the needs and expectations of the customers. Today’s global challenges – from climate change to unemployment and poverty – are both economic and social. The recent economic crisis, which finds part of its roots in financial innovation, reminds us of the importance of mobilizing Science, Technology and Innovation (STI) not solely for generating economic benefits, but also for anticipating and responding to social problems. In this last blog post of the year 2015, I will discuss a little about why Innovation is so important no just in businesses but also to address several social challenges we have been facing these days. First, one important and new professional accomplishment for me as an Entrepreneur, Professor and Academic Researcher – I was named for an important position associated to Innovation. I was appointed as the Director of Innovation at UCB, the University I teach in Brasilia, Brazil since the Dean and the Board of the University identified this sector as an Important piece inside this Educational Institution to foster advances in Education and help students in personalized learning. This will be important, especially for students of the BEPiD Program that I am a Project Manager. Innovation is an important part of companies such as Facebook, Google, Microsoft, etc, but it could be also applied to non-profit organizations. The recent news that Mark Zuckerberg and his wife just founded the Chan-Zuckerberg Foundation (check this article from TechCrunch “The Chan-Zuckerberg Initiative May Be More Important Than Facebook”) has shown that this could be also applied to non-profit Institutions. Why am I mentioning it? Because Educational Institutions run like non-profit organizations and this new model will impact them too. For that reason, the way Foundations work is changing a lot since they will have both a “charity” side and a for-profit side. The Chan-Zuckerberg Foundation is an LLC and could Invest and Partner with both Companies and non-profit Institutions creating a Model with more flexibility. Zuckerberg already donated money to the Educational System in New York State and now he and his wife want to accomplish much more. Their initiative might be more important than Facebook itself. Raising money by Academic and Government Grants for social causes and research has become old-fashioned. Billionaires and Millionaires will “donate” their fortune to Research Institutes and Non-Profits and fund whatever they want without any money from Agencies and the Government (of course the Government will still play a role, but in different ways). Why is that? A justification is that budgets of all the charitable non-profits in the world combined equals only 0.0001% of all assets invested in business through the capital markets; and most Foundations from the United States only allocate 5% of their assets each year to problem-solving. To transform education (for example, in an University such as the one I work in Brazil), feed a planet of over seven billion people, or cure chronic diseases such as cancer, traditional non-profit Institutions will only ever be a tiny piece of the global puzzle. Why is this so important? Over the past decade, thanks to a combination of philanthropy, investment, and policy, we have seen a massive transformation in Innovation in several sectors, especially Education, worldwide. Another example of a major player in this transformation is the Bill & Melinda Gates Foundation. But I believe this is just the beginning. I am very proud to start becoming a part of such an Important position related to Innovation and will follow this new trending Model to tackle social problems. So, Innovation will kind of “drive” me next year. I will keep posting updates on the Innovation Direction at UCB in Brazil. It will be a big challenge for me in 2016!
Image Source: Huffingtonpost Technology