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People and Orginisation

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Submitted By liyjb2
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The wealth of the nation is dependent on the wealth created by citizens, that wealth is created by people seeking opportunities to satisfy demands for new products and services, whether being of their own citizens or for exports the pursuit for those opportunities in a cost efficient way leads to profit for the individual and growth for the company. In this essay I will be describing the relationship between Innovation, Entrepreneurship and Economical development. Well, in my view the relationship between these terms can only be explained thru a virtue circle.

All of these 3 terms rely on each other if for example you reduce tax rate the government will get more tax going in because more companies would want to move to that country with a low tax rate => increase in infrastructure which will stimulate even more companies to move over, which will stimulate the economical development to increase this all was proven by Ronald Reagan. How do you stimulate innovation? Well, there are many ways to stimulate innovation: 1. Education: thru education you can stimulate young minds to innovate create new creative ideas. 2. Subsidies/funds: For example Israel grants a huge sum of money to whoever wants to start their own business, when the company is doing well the Israeli government sells their shares with profit. 3. Infrastructure: This is probably one of the most important factors, these are for example railways, airports, ports,... All these are required for innovation and entrepreneurship. For example, China has been investing allot into its high speed trains this will stimulate Entrepreneurship and innovation. 1.

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