The World Bank: The Role of Innovation in Post-crisis Growth

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(CC) IRRI Images/Flickr

(CC) IRRI Images/Flickr

Innovation is vital for Europe and Central Asian countries’ post-crisis growth, according to the World Bank. The Bank urges countries to focus on key priorities for sustainable growth by ensuring that resources for innovation are not cut as part of fiscal consolidation, but are used more efficiently, and by approaching the crisis as an opportunity to adopt policies that will foster and preserve research and development (R&D) and investment in human capital.

According to a World Bank report discussed at the World Bank’s Eighth Annual Knowledge Economy Forum, held at INSEAD in Fontainebleau from April 29 – May 1, the economic crisis is a powerful opportunity for Europe and Central Asian countries to redirect investments in R&D by restructuring Government-sponsored Research & Development Institutes (RDIs). This should help raise the rate of return on these investments.

The Knowledge Economy Forum stressed that, despite the current economic and financial crisis, investment in human capital is crucial for the medium- to long-term, and that world-class universities are necessary to undertake leading edge research and develop skilled and innovative researchers.

To read the full report, Restructuring of Research and Development Institutes in Europe and Central Asia, please click here.