Business: Why Innovation Is the Key to Success

“What is the calculus of innovation? The calculus of innovation is really quite simple: Knowledge drives innovation, innovation drives productivity, productivity drives economic growth”. William Brody (born 1944), Scientist

Innovation is the driving force behind our modern economies. Across all sectors, key players are continuously developing new solutions that address the diverse problems we face today around the world. But those companies that rise to the top of their sectors, and manage to stay there, are the ones who commit a considerable amount of time and resources to innovation.

This article will take a look at three very different sectors to see how innovators are driving economic growth and development.

Innovation for energy

The sector about which hear and read the most today is arguably the energy sector. Whether it be stories focused on the current energy crises caused by the war in Ukraine, the rush for the development of renewable energy sources, or the threat of climate change, the word energy is often swiftly followed by the word innovation. Indeed, the renewable energy sector relies on (technological) innovation for its very existence.

The development of AI, automation, and additive manufacturing, to name a few, will have far-reaching consequences on energy sector infrastructure, facilitating the development of new, clean energy solutions. Their monitoring capabilities permit the replacement of old technologies and infrastructures with new innovations. In business terms, these developments can create employment opportunities, new revenue streams, and investment opportunities for private equity firms.

A good example is the development of thin film solar photovoltaic technology. The second-generation innovation aims to generate solar energy by depositing one or several “thin films” of photovoltaic technology on substrates like glass, plastic, or metal. It has been developed as a cheaper alternative to conventional c-Si technologies that can be expensive to install and require a lot of space.

One company developing the solution is the UK firm Power Roll, which has developed a unique thin-film solution using a polymer substrate that offers both power generation and storage.

 “Power Roll’s technology has the capacity to change the outlook of solar installation the world over, not only by a dramatic reduction in cost but also because it opens up the use of a huge variety of sites and buildings that would not be suited to traditional solar installations,” said Doug Duguid, Chief Executive of i7v, a key investor in the firm. 

“Power Roll’s core microgroove technology has a number of other applications beyond solar, and as a result, they have created a platform product with potentially multiple uses, which is very appealing to us as an investor.” 

Power Roll is currently working with a perovskite solar ink, and has already achieved 11% efficiency, with a roadmap to bring this to 20%, and promises production costs as low as $0.03 per watt.

Indeed, they are a plethora of innovations waiting to transform the energy sector. An over-reliance on fossil fuels will be a thing of the past, as firms push for modern solutions for the benefit of us all.

Innovation as a pillar of the banknote security printing

Energy is an obvious choice when looking for a sector driven by innovation and development… It is true to say, however, that innovation is also the backbone of old legacy niche sectors, where just a few players dominate the ecosystem thanks to their experience and know-how.

One such sector is that of banknote security printing, an age-old practice that has relied on constant technological innovation in order to respond to the omnipresent threats of fraud and counterfeiting. This has resulted in the development of special banknote papers, inks, printing techniques, and state-of-the-art security features that provide modern, high-tech protection and thus the trust of central banks and printing houses around the world. Innovation, then, represents a significant pursuit for such firms, whose commitment to excellence requires substantial investment in research and development.

“The banknote is by its very nature a high-security and highly technological product. The security aspects of banknotes are under constant development. Our R&D division works relentlessly to create new security features that we offer our clients in order to deal with counterfeits. Developments in our clients’ banknote series are a perfect illustration of the technological innovations at work in our industry” said Thomas Savare, CEO of French security printing firm, OberthurFiduciaire.

The firm has developed some of the most modern security features in the field, which has led it to become a trusted partner of central banks around the world, thanks to its far-reaching commitment to research and development. Innovations such as its Relief™ 3D thread solution, or its Pulsar™ color shift thread are at the forefront of technologies used today. OberthurFiduciaire recently acquired the Swedish company Rolling Optics which is a leader in “micro-optical” technologies. This focus on innovation has allowed the firm to stay ahead of counterfeiters and secure a place in the world’s leading security printers, in a small but highly competitive sector.

When innovation drives logistics

The world of banknote printing is just one small component of a globalized economy that thrives on innovative solutions, research, and development. Bringing this all together is the world of supply chains and logistics.

Worldwide supply chain infrastructure issues were brought to the fore during the pandemic, and the logistics sector has had to turn to innovation to find new solutions to volatile issues. The sector’s use of the Internet of Things, Cloud Computing, AI, machine learning, and robotics has long meant that innovation has driven market growth and value creation.

Some of the most futuristic innovations can be found in the logistics sector, including driverless, autonomous vehicles, an innovation that is sure to have a huge impact on our cities in the future.

One company, the Chinese firm Baidu with a strong AI foundation, has already promised to add 200 driverless robot axis to its fleet in 2023 following successes in Wuhan and Chongqing.

Another, Swedish firm Volvo, has developed an extensive autonomous vehicles solution, partnering with firms around the world to develop automotive innovations in sectors from mining and industry to logistics, ports, and highways. CEO Nils Jaeger underlined the importance of technology, innovation, and regulation in the future success of autonomous driving: “For autonomous driving to take off on-highway, we need three things to happen. 

We need to master the technology – especially of perception systems that allow vehicles to travel at high speeds. Secondly, we need society to trust us when we say this new tech is beneficial, and finally, we need legislators to adapt laws to give autonomous vehicles access to the highways. It’s a puzzle and we need all the pieces to fall into place.”

Innovation is at the heart of all sectors, even those that seem more immune to the changes in our ultra-connected society. Often far from the headlines, innovations shape our daily lives and ultimately decide which companies will be allowed to continue their journey. Innovation is everything.