Capital, just as its name implies, it is correlated to money, currency, finance, is more inside the economic field. Innovation by dictionary explaining is creating something new. What is the relationship between capital and innovation and what other reasons affect change is quite fascinating to discover? Through history development, the capital, that is an essential element for generating change; in other words, with the help of economic or financial support, the favourable environment can be built to become innovative in the scientific and technological field. By contrast, across the world today, mainly most innovative companies and countries belong to economically developed countries. These businesses and countries have a similar feature that has a huge number of economic input records in the history whereas, in undeveloped areas such as Africa, people are still suffering from poverty to fight against disease and famine so that it is too unrealistic to talk about innovation. However, at the meantime in developed countries, the massive GDP input or R&D have already had the positive impact on innovation by breaking through the research.
Since the financial crisis, many countries start to find a solution such as encouraging innovation for helping economy back to right track. One of the figures of whether a country pays attention to innovation is the expenditure on R&D. "Research and Development plays a critical role in the innovation process. It is essentially an investment in technology and future capabilities which transformed into new products, processes, and services"(Incremental innovation,(n.d). "South Korea is the world's leading spender on research and development (R&D) as a percentage of gross domestic product (GDP). In pure dollar terms, however, the United States is consistently the largest spender on R&D, followed by China and then Japan"(INVESTOPEDIA, 2015). "Global growth in research and development has shown the powerful increasing feature and is growing rapidly in both public and private R&D investment outside previously dominant centres of North America, Europe and Japan. The largest spenders currently are the US, the UK, France, Germany, Japan, China and South Korea. These seven countries occupy approximately 71 percent of worldwide R&D expenditures"(Brugel, 2013). At the same time, these countries every year report the most academic essays and hold the most patents. Historically, when a country's labour is getting increasingly expensive plus more areas with relatively cheap labour are emerging, which also means lose the advantage of labor,company will begin to shift the production to cheap labour place for maximising capital profit; in other words, company moved factory to abroad and hire local people working in the production chain for long-term development. For instance, iPhone initially gets assemblage in China, however, as people's disposable income goes up gradually, Apple starts considering to shift all Apple production chains to another place. Upon this circumstances, it is indicated that some countries as called middle-income countries economically are facing a sort of "sandwich" reality. Specifically, On the other hand, technically advanced nations are monopolising technical field and holding most patents on, which they are totally controlling. On the contrary, the low-income countries having the comparative advantage with cheap labour cost, abounded land, human and energy resources more than middle-income countries. As a result, these countries are forced to achieve industrial upgrading by exploring potentially technological development through financial support on the most small-medium size company for encouraging innovation as to find a new economic driver. Across the world, if we look back the historical development of modern, prosperous country, all of them thrive based on strong industry such as UK, US, Germany, Japan, former Soviet Union and most industrialised nations. That are to say, when these countries finished industrialisation, it is the same time they started developing a tertiary economy, for instance, finance, IT and high-tech industry.
With economic support, the company can have a better environment for innovation. All successful companies around the world, none of them disregard the change during the development, while those undertakings have the record of a vast amount of capital input. The economist(2012) illustrates that "TOYOTA spent more on research and development (R&D) than any other company in the world in 2011, according to "Global Innovation 1,000". This report compiled by Booz & Company, a consultancy, looks at the companies with the 1,000 biggest R&D budgets. Toyota increased its 2010 spending by 16.5%, and the car industry as a whole increased spending by $13.2 billion, largely to meet fuel economy standards and improve electronics". In this case, it seems that the more invest in, the more innovation it will generate and the more competitive it will become, however, In 2014, FINANCIAL TIMES indicates that "After analysing 10 years of data, Strategy&research concluded that there is no difference between how well does a company do and how much bigger R&D spending compared others". FINANCIAL TIMES(2014) also shows that "On the three measures of revenue growth, growth in underlying earnings as a percentage of revenue, and growth in market capitalisation, the most innovative companies outperform the highest spenders". According to conducted research, the growth of R&D start slipping, as FINANCIAL TIME(2014) shows that" R&D spending was 10.3 percent, which is higher than 2010, and by 2012, growth had moved to 9.7, it has fallen further, 3.8 percent in 2013 and just 1.4 percent in 2014". On the one hand, it has been demonstrated that the growth of R&D spending gets lessened, one the other hand, it is contradicted that high spending does not guarantee innovation taking place. Especially. During these years, the spending of company increase whereas the patent decrease year by year. On some ways, these result seemingly imply that the capital expenditure is not the only factor for innovation. The fact is that an enormous amount of investment input sometimes does not necessarily have a real output in return, but without the input, it will have not the output; in other words, no capital spending is impossible for a company talking about innovation and being competitive. The simple reason for that is no foundation to do research development at least this analogy suits the scientific institution. Capital is an economic factor impact on innovation, which considered as a hard condition. The element of change is very dynamic, it could be related education, could be the person, opportunity even enterprising strategy, no matter what it is, it is a synthesis factor to affect.
I conclude tree common factors to explain the mechanism for innovation, and first, it is capital or economic support, second it is IPR( intellectual property protection), and third is the environment, the environment can be enterprise environment, social environment, legal environment or the environment created by government. Economic support in my view is an essential element for innovation, which can be the bank loan, enterprising investment or the capital gained from society, it allowed the market has to be open completely and provided with an excellent financial environment that shareholders trust to put their money in such as the stock exchange. The global economy probably can be seen as an economy of currency; everything is related to currency and driven by money. For example, when Apple get mentioned, people will praise it is a productive and innovative company, which apparently created significant value and fortune for Apple. However, what is the key success behind Apple, on the one hand, consumer appreciate the greatness of Jobs, on the contrary, it is the greatness belong to capital, once it gets capital support, it would attract human resource and land resource. If a project appears on the market, it takes investment by a significant number of investors in a quick time without to do advertisement; that is a good project. A good project must be innovative and must suit the development of society as well as suits the demand from the consumer. IPR-Intellectual property protection is critical to fostering innovation. Without the protection of ideas, businesses and individuals would not reap the full benefits of their inventions and would focus less on research and development. Similarly, artists would not be fully compensated for their creations, and cultural vitality would suffer as a result. The types of intellectual property divided into copyrights, trademarks, patents and trade secrets. The effect of IPR is incredible, one thing can only demonstrate the significance of IPR, if there are no relevant measures for IPR, the enterprise will lose competence, which means it will get killed by the specified company that can be called dead enterprise or zombie business of not respecting IPR. The consequence is that these companies always keep alive and everything made whatever is extensive research and development will end up by zero. The point is that enterprise and government have to work collaboratively and cooperatively to protect intellectual property, otherwise, there would be impossible to be innovative. Ultimately, the condition for innovation belongs to multiple environments, educational environment-enterprise environment-social environment. Specifically, all schools included University and college are a good place to import human resource for the enterprise. The judgement of whether a company is successful depend on of the strategy of the business that relies on the active environment created from manager to ordinary officer. The social context is a widespread notion; it reflects the development of society, the enhancement of people's life and income, effectiveness of law and the demand from individuals and market, which are the base of innovation. Overall, the relationship between factor and change is not restricted in capital; it is so much more than that. No matter how innovative does the enterprise will become and how the change will go, it will be turned back to helping human being with a valuable product.
Regarding my studio project, the money plays a significant role while making process. I am taking wearable art paper, so I want to experiment the interactivity between the skin and wearable device, which is a futuristic lion mask with two LED eyes on, the LED will be activated as soon as the sensor receive pressure. The objective reason influences the quality of my project is the budget. Because the full mask is getting 3D printed, which the price of material for printing is unaffordable. As a result, I chose a cheap price material for distribution but not for the quality, in addition, the size of MakerBot is too limited to print the full mask, thus the mask is get printed into two parts, and I glued them together. However, it does affect the quality of my exhibition, which has the possibility of dividing into two parts at any time. Through these examples, I want to indicate that, indeed, how much you spend can influence the quality of your project when it comes to an exhibition, but I am not complaining about the money is supposed to attribute to the factor of changing the quality of the project.
This research is to explore the relationship bwtween the factor of innovation and innovatiobn itself majoring in th relationship between capital and innovation. This research is more explained and explored in a economic way. The whole research essay is made by the resource from internet and my own knowlegde combined. The purpose of this research is to give me pre-understanding about what will be the factor for enterprise from a wide perspective. This research firstly starts from collecting related data from most of authorised website, secondly find the another factors of innovation through researching and finally conclude how are those factors important for innovation. Overall, this research is to understand the importance of capital for enterprise and country that want to be competitive and innovative globally, it is also important to know that the budget for doing my own budget is the reason of affecting the quality of project. To make it clearer, I make a Prei to support my research.