Mr. Robert D Hormats, Under Secretary for Economic Growth, Energy and Environment of United States has recently exalted the Tata Nano small car for the technological innovation it has incorporated and also said that this $3,000 Nano has set new global standards for the low cost cars. Mr. Hormats also referred Nano as the epitome of innovation in the affordable things developed for the masses. Tata Motors is extremely cautious about the investments it has done in the research and development of this car and therefore has filed many patents for Nano’s design.
According to Mr. Hormats, Innovation is not something that is limited to the developed world and these innovative ideas and products are originating more and more in the emerging market where research centers, highly entrepreneurial businesses and innovative scientists are growing in number. He added that there should be incentives for developing new and innovative products and these incentives to invest in companies that commercialize creative works and inventions depend on the IP (intellectual Property) rights. Mr. Hormats also stated that the occurrence of innovation is pretty speedy and the incentives on this is needed for large multi-national corporations and small businesses in developed and emerging economies and also in some of the poorest countries of the world. He added that the government should take up the responsibility of protecting the IP rights to support the visionary innovators in their homeland as well as from outside it.
He mentioned that the internet, mobile phone applications and social media have the potential of collaborating and innovating on an incredible scale. But if the government does not enforce IP rights and support free and open exchange of ideas and also reward the risks taken through providing protection, the innovation will be nipped in the bud. He supported that ideas should be welcomed from all sides, they must be allowed to compete and the best one among them should be rewarded. He called all this protection and free exchange of idea the recipe for an innovative economy and also said that this thing has formed the basis for the economic success of America and other nations for the past two centuries. The economies that are still emerging need to strive to match this formula in order to support their dynamism.