Innovative Activities of Firms Research Paper - 825 Words

Implications of Globalization on the Innovative Activities of Firms (Research Paper Sample) Content: IMPLICATIONS OF GLOBALIZATION ON THE INNOVATIVE ACTIVITIES OF FIRMSNameInstitution AffiliationIntroductionGlobalization has had a major effect on innovative activities of business entities in the US, and the rest of the world as well (Lucas, 2012, p. 3). Innovative activities are, however, depending on the business environment surrounding a business. This paper seeks to highlight how globalization, and other factors that make up a business environment, affect innovation in the US.Features of the Business Environment in the USA business environment is comprised of the surrounding situation within which a business operates. It is a collection of political, social, cultural, economical, physical, technological, legal, and global factors/globalization that affect how a business operates (Jain, Trehan, and Trehan, nd, p. 250). These forces put together, create a social-economic-political situation, which is known as the business environment.Business environments vary from country to country, or even region to region (Jain, Trehan, and Trehan, nd, p. 111). For instance, the business environment in Afghanistan is different from that one in the US. Again, a business environment is very dynamic, and unpredictable, because it is determined by external factors (Jain, Trehan, and Trehan, nd, p. 253).Aspects which are likely to promote innovation in the USThe current administration of the US, has embraced innovation for its contribution to economic growth and improved well-being. As such, the US President, Barrack Obama launched the Strategy for American Innovation in November 2010 (Obama, 2011, p. 1). This is an indication that there is sufficient support for innovation and creativity.Aspects which are likely to promote innovation are political, legal, technological, social, and global factors. Innovation is a sure way to growth and development, and to achieve such growth, there should be policies that back up innovation. Political and legal authorities are responsible for creating such policies, and this explains why political and legal factors are listed among the aspects that encourage innovation in the (US Obama, 2011, p. 1).The technological force also, promotes innovation in the US in a huge way (Obama, 2011, p. 1). Technology keeps changing and growing every day, and the US has played a good fit in keeping up with the changing technology. It is one of the countries that have taken huge strides to develop its technology. This keeps promoting the need to innovate and create more ways, and ideas to make use of the available technology. Besides that, technology has a number of benefits to people. Innovation is a sure way for people in the US to keep enjoying these benefits.There are several social problems in the US that affect the quality of life. Such include health and education issues (Obama, 2011, p. 3). People need to come up with solutions to such social problems. As many people will say, need is the mother of innovation. As such, it is right to conclude that these social problems are a driving force of innovation.Looking at the global factors, there is a lot of competition around the globe for various prospects. This includes competition in business, and any other platform used to define growth and development (Obama, 2011, p. 4). Various countries will encourage innovation and creativity to ensure that they outdo competition wherever they can. The US has done well to this bid, and stakeholders are doing their best to ensure the country remains at the top when it comes to innovation.Obstacles that firms might encounter when trying to encounter innovationA major obstacle that firms are likely to encounter when working towards innovation is the lack of funds. The US government has already played its role by setting aside funds for research projects meant to yield innovations (Obama, 2011, p. 6). However, these funds do not get to everyone or everywhere where they are needed. Only a few are lucky enough to get the funding, be it from the government, or any other institution.Another obstacle is having a culture in workplaces that encourages innovation (Fernando, 2011, p. 64). If employees are motivated, they will go out of their way to create and innovate things that will in turn, benefit the society, and the economy at large. Most workplaces do not have a system through which employees can give their ideas and make their contributions towards innovation.To leverage the peculiarities of the national innovation system, innovative firms should create links with other private, and public business entities, universities, and public research systems. This way, all stakeholders can take part in joint research, personal exchanges, purchase of needed equipment, as well as cross-patenting (OECD, 2012, p. 9). Such efforts are needed to promote innovation in the country.Personal view on whether investing in the US would promote innovationI am of the opinion that investing in the US would promo te innovation. Economic investors have indicated that investing in the US is key to a stable economic future, and an ability to forge solutions to existing problems (Fernando, 2011, p. 78)...