On 27th of November (2014) took place the 11th edition of the Breakfast with the innovation: “External Imbalances, International competitiveness and innovation”, conducted by professor Juergen B. Donges, PhD in Economics from the University of Saarbürcken and Professor Emeritus of Economics at the Cologne University, Germany.
The presentation was about the link between the external imbalance of countries and its relation to competitiveness and innovation. The speaker explained why an external deficit in the current-account balance doesn’t have to be negative for a country economy, if foreign capital received is effectively applied and it turns to help for economic growth and employment creation.
He also pointed out to innovation as an important parameter to use by companies to operate with success in the market, instead of the usual prices adjustments. The productivity of a firm whose innovative activity results on producing better quality products, an improvement of its after-sale service or less environmental impact, will be less dependent on the competence on the market prices, and it will allow to propel its presence in both national and international markets.
Prof. Donges expressed his conviction about the role that the public sector has to play in promoting basic innovation. He considers, however, that even though the development of innovation projects can be linked to certain public institutions of research or universities, the most efficient way to promote creativity and innovative capability is found within the companies themselves.
The professor encouraged students to take advantage of the opportunities that the current Digital Economy era offers, and to explore and “exploit” all its limits. He also expressed his content to the new change in some European accounting regulations that consider R&D activities more an investment that an expenditure. Finally urged public administrations to protect entrepreneurs, to facilitate their development by eliminate the bureaucratic maze that Spanish entrepreneurs have to face and that it may hold a dissuasive effect.