Innovation has become one of the main needs of most countries. Innovation is one of the most important factors and the main incentives for sustainable growth and economic innovation of a country. This research aims to identify the impact of innovation and other macroeconomic variables on the economic growth of Sri Lanka over the period of time 1978 to 2017. Innovation is critical to innovation reception and creation, and to clarify the huge contrasts in usefulness across and inside countries. The Global Innovation Index gives nitty-gritty measurements about the advancement execution of 127 nations and economies all throughout the planet. In 2017 Sri Lanka was positioned in 90th spot in the world advancement list acquiring a score of 29.85. The report further lucid, Sri Lanka performed inadequately in sub-records of 111th situation in Institutions 105th situation in Human Capital and Research, while showing strength in 63rd position Infrastructure and Knowledge and 68th situation in Technology Outputs. The nation positioned 86th in Market Sophistication sub-file, 83rd in Business Sophistication, and 86th in Creative Outputs.
The meaning of the innovation is shifted from individual to individual. In the perspective of clients, innovation alludes to items with better quality and better assistance. From the part of business, innovation is characterized as economical innovation and advancement and acquiring more benefit. Workers imply new and that is only the tip of the iceberg intriguing position which gives higher compensations. Further, Organization for Economic Co-operation and Development (OECD) refers, “Advancement is creation or Adoption, digestion and double-dealing of a value-added curiosity in monetary and social circles; restoration and expansion of items, benefits and advertises advancement of new techniques for creation and foundation of new the board frameworks. It is both a process and a result”. Thus, we can say, advancement is changing the groundbreaking thought and information into new items and administrations. That is the reason created nations turned into pioneer countries. Indeed, even in Sri Lanka, it spends exceptionally less on R&D uses exceptionally less. So, innovation is a significant driver of long haul
efficiency and reasonable monetary innovation of a country. These days, Sri Lanka attempts to move from a lower centre pay country to a higher centre pay country within the following twenty years. By the by, Sri Lanka needs to consider recuperation from the central pay country trap. Sri Lanka is one of the creating and farming base countries. Its present creations depend on straightforward innovation. Thus, the Economic Complexity Index accumulated by Harvard University and Massachusetts Institute of Technology has positioned Sri Lanka as a basic item creating country starting around 1995.
Likewise, for this load of years, around 98% of Sri Lanka’s commodities has been founded on basic innovation.
Despite the fact that Sri Lanka will actually want to support its general economy through an upgraded center around advancement. Since, as per the National Science and Technology Commission (NASTEC), there exists a connection between putting resources into innovative work, and higher financial innovation, multiplying GDP growth
Internationally advancement is estimated by the Worldwide Innovation Index (GII). GII ranks the nations every year as indicated by the country’s ability for accomplishment in advancement. The Global Innovation File is processed by the two subindices, for example, the Innovation Input Sub-Index and the Innovation Output Sub-Index. (GDP) is utilized to gauge the monetary innovation of a country. Gross domestic product is the estimation of a nation’s yield within the time timeframe. To advance the financial innovation of a country, a nation increments the number of sources of info or productivity of inputs. Here, efficiency is expanded by novel thoughts and innovation.
Accordingly, in the advanced economy, innovation is fundamental for esteem creation, innovation and work of an economy and its cycles happen at the different degrees of big business, local also, public. And furthermore, innovation prompts new organizations and to increment the seriousness of existing ventures. Significantly, it serves a nation to accomplish its objective by expanding yield through further developing the efficiency of inputs which is just conceivable by improving new items or creation process. Despite the fact that advancement of new items is basic to a nation’s manageable innovation and better quality of living. Be that as it may, these days, created nations are spending on innovative work more than the agricultural nations and immature nations
Initially, Sri Lanka is in the 94th spot out of 127 nations on the planet in the past five years. Sri Lanka’s present creation blend depends on straightforward innovation. The Economic Complexity Index aggregated by Harvard University and Massachusetts Institute of Technology has positioned Sri Lanka as a straightforward item creating country starting around 1995. As examined by Sri Lanka ought to make an ‘advancement economy’, and in addition to an information economy, by utilizing the examination think-tanks at colleges and exploration establishments in case it is to convey supported thriving to its kin and he further contends in his article, Countries that have moved into complex creation frameworks have been victors. Sri Lanka was confronting a common conflict that was wound up in 2009. The economist anticipated Sri Lanka as a focal center point for the business and anticipated a dramatic innovation in its business with different nations. Argues, Employee advancement conduct is most prominent when worker affectability to ethnic clash is high, hierarchical disappointment is low and when directors are seen to be profoundly community in overseeing struggle, whether or not the workgroup is ethnically homogenous or various. In the perspective of the above assertion, Sri Lanka ought to have been enhanced with its innovation in the beyond 30 years of inner ethnic contentions. What is the situation in Sri Lanka? Did we absorb the present circumstance and abridge the addition of ethnic struggle to the business?
Accordingly, to comprehend the current status and to propose an improvement, a review on innovation in the Sri Lankan setting is required. Further recommend more social investigations to comprehend the impacts of segment, specialized, mental and social variables on the innovation cycle exercises of the nearby advancement frameworks in Sri Lanka. Subsequently to comprehend the current status and to propose an improvement, a review on innovation in the Sri Lankan setting is required. Further propose more social examinations to comprehend the impacts of segment, specialized, mental and social components on the innovation interaction exercises of the nearby advancement frameworks in Sri Lanka.