Global Innovation Outlook: Insights from the Chief Economic Advisor to the WEF
Professor Sala-i-Martin is one of the economists who led the intellectual revolution of “endogenous growth”: a revolution that emphasizes the need for nations to grow through ideas and innovation. As an expert in growth, Sala-i-Martin explains what countries (and companies) must do to establish an environment that enables citizens and businesses to create, develop and implement new ideas that will allow them to progress and grow.
As Chief Economic Advisor to the WEF (since 2003), Professor Sala-i-Martin has had the privilege to track countries and industries all over the world. Hence, he has a unique perspective on innovation and competitiveness, and is able to identify successful practices and patterns of those countries, companies and business leaders that have thrived over the last decade amidst challenges. No one can depict the future. However, by preparing ourselves (and the future generations) to implement an innovative and creative mindset we will be able to better cope with the changing new world orders and novel business environments. Thus, it’s important to keep questioning yourself: what have you done different today?
A new world order? How to remain competitive in today´s economy
Throughout history, there are many examples of countries that have implemented policies that enhance or hinder international trade. The spectacular economic success of China and the rest of East Asia is an example of how trade can be a driver of economic growth. It also exemplifies the dangers that the rise of protectionism and isolationist policies around the world, can pose to the global economy. Overall, international trade is beneficial and has spurred technological diffusion as well as the development of the knowledge led economy and innovation. However, all policies have their shortcomings and so does international trade. Even though the overall effect on the economy is positive, not every citizen benefits from it. In fact, there are workers who lose their jobs. These “globalization losers” serve as a breeding ground for the rise of demagogic and populist politicians who use their discontent to propose policies that will have the opposite effect: they will benefit only a few at the detriment of the majority.
It’s clear that governments should implement policies that help the “losers of globalization”. Contrary to popular belief, the key policy is not redistribution taxes and subsidies. The correct policy is to provide the tools so that the losing workers have an easy transition to a new job. And this means a new way to educate them: a new education system is required, to really ensure that today´s students are prepared to deal with the challenges imposed by globalization and to be more competitive to face the changing future. Professor Sala-i-Martin thoroughly explains how the new education system should be.
FC Barcelona: A Success Case. Four Key Business Lessons.
The story of FC Barcelona depicts one of the most extreme, impressive and successful organizational transformations in sports history; after half a decade of economic and competitive drought, a new board of directors led by Joan Laporta took over the club in 2003. Seven years later, the club had won four Spanish Leagues, two UEFA Champion Leagues, three Spanish Supercups, a European Supercup, a King’s Cup, and a World Club Cup; by 2010 it was “the best sports club in the world” for second consecutive year, and had an accumulated economic surplus of over 131 million Euros.
In this presentation, Professor Sala-i-Martin explains how the most important and controversial decisions made by the club in the last few years such as hiring Frank Rijkaard and Pep Guardiola, making a strong bet on the low tier teams, and the “crazy” decision to be the only club without a commercial sponsor on its shirt turned out to be the right ones.