INCREASING ECONOMIC COMPETITIVENESS THROUGH THE ROLE OF INNOVATION

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INCREASING ECONOMIC COMPETITIVENESS THROUGH THE

ROLE OF INNOVATION

Introduction

Rapid developments in information technology and globalization have brought

significant impacts on the global economy (Supriandi, 2022; Xu & Liu, 2020). Countries

around the world are competing to improve their economic competitiveness. In this context,

innovation is recognized as a key factor that can help countries improve their economic

competitiveness (Yurynets et al., 2015) At the international level, studies show that countries

with high levels of innovation have stronger economic competitiveness. These countries have

the ability to produce more sophisticated and innovative products and services, increase

productivity, and create new jobs (Krammer, 2017).

(Jones & Lee, 2018) discussed how innovation can improve the competitiveness of

small and medium enterprises in South Korea through the application of technology and

changes in business models. (Kamarudin et al., 2021; Nordin et al., 2018). This research

investigates the impact of innovation on economic competitiveness through a case study of

small and medium enterprises in Malaysia. (Krasnikov & Jayachandran, 2008). This study

attempts to determine the relative contribution of marketing, research and development, and

operations capabilities to firm performance by evaluating a number of global manufacturing

firms. (Manzaneque et al., 2018) This study examines whether innovation improves

competitiveness in the ceramic industry in Spain through empirical analysis of ceramic

industry data over the period 2008-2015. (Kalkan & Bozkurt, 2017) This study discusses how

innovation affects the competitiveness of small and medium enterprises in Turkey through a

case study of several small and medium enterprises in Turkey.

Several international studies have been conducted to explore the role of innovation in

improving economic competitiveness, especially in developed countries such as the United

States, Japan, and European countries. Several studies highlight the importance of innovation

in driving economic growth and creating new jobs, as well as improving a country's

competitiveness in the global market. Research shows that innovation can accelerate digital

transformation and generate new technologies to meet the needs of an evolving market. The

current competitiveness of the United States, China, Japan, Germany and other developed

countries is closely related to the role of innovation in improving economic competitiveness.

All of these countries place innovation as one of the main focuses to improve their

competitiveness in the global market (Ghosh & Maiti, 2021; Mofijur et al., 2021; Stiglitz,

2016).

The United States has many large technology companies such as Apple, Google and

Amazon, which are constantly developing new technologies to improve their

competitiveness. In addition, the United States also has many research institutes and

universities that focus on innovation development. China, on the other hand, focuses on

developing new technologies, and invests heavily in research and development, and promotes

innovation in their five-year plans. The Chinese government also provides incentives for

innovation and promotes collaboration between the public and private sectors. Japan is one of

the countries known for its high-tech innovations, such as robotics, electric vehicles, and

wireless communications.

The Japanese government supports innovation development through funding and tax

incentives. Germany is also recognized as one of the leaders in technological innovation,

especially in the automotive and manufacturing fields. The German government supports

innovation development with research funding and incentive programs. In general, developed

countries that focus on developing innovation and new technologies have stronger economic

competitiveness (Dwiastuti, n.d.; Nip, 2016; Rahmat, 2021; Yuni et al., 2020). Therefore, it is

important for developing countries to prioritize innovation development in order to improve

their competitiveness in the global market. However, several studies highlight the challenges

that arise in implementing innovation, such as a lack of government policy support, a lack of

qualified human resources, and difficulties in creating an environment conducive to

innovation. Some studies also emphasized the importance of collaboration between the public

and private sectors in fostering innovation and creating a sustainable innovation ecosystem.

Overall, international research shows that innovation plays an important role in improving

economic competitiveness and economic growth, but successful implementation of

innovation requires strong support from both the public and private sectors as well as an

environment conducive to innovation (Ma'ruf & Wihastuti, 2008; Muttaqin, 2018; B. Purba,

2020; Statistics, 2014). Purba, 2020; Statistics, 2014).

However, at the national level, there are still challenges that must be overcome to

improve innovation and economic competitiveness. One challenge is the low level of

spending on R&D and innovation by the government and private sector. In addition,

infrastructure deficiencies, lack of education and training, and unclear regulations can also

hinder the progress of innovation and economic competitiveness. Innovation has become an

important key in driving economic growth in the 21st century. It stimulates the creation of

new products and services, improves efficiency and productivity, and creates jobs. In the era

of globalization and increasingly fierce competition, innovation is a crucial factor in

improving a country's competitiveness in the context of the global economy (Halim, 2020;

Indayani & Hartono, 2020; Nugroho, 2016; Soleh, 2014). Therefore, research on the role of

innovation in improving economic competitiveness is becoming increasingly important.

Various innovations in technology, management, and marketing can help companies and

countries to be more competitive in the global market. In addition, innovation can also have a

positive impact on society, such as improving welfare and quality of life (Keni, 2019;

Supriandi, 2022).

In the context of United States, innovation is one of the important factors in

answering the various challenges faced in developing the economy. In order to achieve

United States vision as a developed country by 2045, innovation is considered as one of the

main keys. Therefore, it is important to study the role of innovation in improving economic

competitiveness in United States. Although the importance of the role of innovation in

improving economic competitiveness has been widely recognized, there are still several

research gaps in this study. Some of them are: Lack of understanding of how innovation can

be applied in business practices in various industrial sectors in United States. Lack of in-

depth empirical research on the effect of innovation on economic performance in United

States. Lack of research that looks at specific aspects of innovation, such as the types of

innovation and the factors that influence them, as well as their impact on economic growth.

Lack of research on the effectiveness of government policies in encouraging innovation and

improving economic competitiveness (Arini et al., 2018; Harahap et al., 2020; United States,

2018; Nasional & Nasional, 2017; Purnomo, 2016).

Therefore, further research needs to be done to fill the research gap and deepen the

understanding of the role of innovation in improving economic competitiveness in United

States. The urgency of the study on the role of innovation in improving economic

competitiveness is critical, especially in the context of globalization and intensifying market

competition. Urgency to improve efficiency and productivity: Innovation can help companies

and countries improve efficiency and productivity through improved technology,

management, and more effective new product development (Apriyanti, 2018; Kusumawati,

2010). Improving competitiveness: Innovation is key in improving a country's

competitiveness in the global market (Banani, 2013; Sistem & Berbasis, 2013). Countries that

are able to produce quality and timely innovations will have a competitive advantage in the

global market (B. Purba, 2020; Rusdiana & Maesya, 2017).

Driving economic growth: Innovation can stimulate economic growth through the

creation of new products and services, increased investment, and the creation of new jobs.

Improving quality of life: Innovation can have a positive impact on society, such as

improving quality of life, health, education, and public services. Strengthening the country's

vision and mission: In the United States context, innovation is one of the key factors in

driving the achievement of United States vision as a developed country by 2045. Therefore,

understanding the role of innovation in improving economic competitiveness is critical to

strengthening the country's vision and mission. United States is currently still facing various

challenges in improving its competitiveness in the global market. According to the 2021

Global Competitiveness Index released by the World Economic Forum, United States ranks

56 out of 140 countries in terms of economic competitiveness. Despite improving from 62nd

place in the previous year, United States still has the potential to improve its competitiveness

in the global market. One of the key factors in improving United States competitiveness is

innovation. In the context of United States, innovation is key in answering the various

challenges faced in developing the economy. In order to achieve United States vision as a

developed country by 2045, innovation is considered as one of the main keys. Therefore,

United States needs to continue to encourage innovation and technology to improve its

economic competitiveness in the global market (Nasional & Nasional, 2017; Purnomo, 2016;

Santoso et al., 2020).

However, there are still several challenges in encouraging innovation and improving

economic competitiveness in United States, such as low levels of digital literacy and limited

qualified human resources, as well as low government and private sector support in

innovation development (Ahmad et al., 2020; Latifah & Lubis, 2019; Sulaiman et al., 2021;

Sylvana & Awaluddin, 2017; Zubaidah & Afifah, 2020). By strengthening the role of

innovation in improving economic competitiveness, it is hoped that United States can

continue to improve its position in the global market and have a positive impact on economic

growth and people's welfare. The urgency of economic competitiveness in the title "The Role

of Innovation in Improving Economic Competitiveness" is very important because economic

competitiveness is a key factor to increase economic growth and prosperity of a country.

Countries with strong economic competitiveness tend to have higher levels of prosperity,

such as lower unemployment rates, more stable economic growth, and better public welfare

(Hilman, 2014; Khamimah, 2021; Khouroh et al., 2021).

Innovation is considered one of the key factors in improving economic

competitiveness, as it can create added value and competitive advantage for companies, as

well as contribute to sustainable economic growth. Innovation can help companies to produce

better, more efficient, and more friendly products or services environment, so as to meet the

increasingly diverse needs and preferences of consumers. Therefore, understanding the role

of innovation in improving economic competitiveness is crucial for governments, businesses

and academics. They can formulate appropriate policies to encourage innovation in various

economic sectors, including education, research and development, and financial support (Ch

et al., 2020; Firmansyah, 2022; Wahyuni & Kistyanto, 2013). By doing so, countries can

improve their economic competitiveness and achieve more sustainable economic growth. It is

important for the government and private sector at the national level to increase investment in

innovation and R&D and improve infrastructure and the business environment. This can help

increase the country's economic competitiveness in the global market and open up new

opportunities for sustainable economic development (Alvarez & Barney, 2007; Barney, 2001;

Bilbao-Osorio & Rodríguez-Pose, 2004; Cameron, 1996; Rosenberg, 2006; Ulku, 2004).

Literature Review

(Chris Freeman, 2013; Christopher Freeman, 1982). The economics of industrial

innovation discusses the relationship between innovation and economic growth. Freeman is a

British economist who developed the concept of innovation as one of the main factors in

accelerating economic growth. In his book, Freeman presents several important concepts

related to innovation, such as "modes of innovation" which describe the ways in which

innovation occurs within a sector or industry. He also points out that innovation can be the

cause of structural change in a sector or industry, as innovation can create new products and

services, increase productivity, and open up new opportunities in the market. Freeman also

identified factors that influence innovation, such as government policies, investment in

research and development, and cooperation between firms and research institutions.

According to him, innovation can also be a source of competitive advantage for companies,

so it is important for companies to develop strong innovation capabilities. In his book,

Freeman also presents several case studies of innovation in various industrial sectors,

including information technology, the automotive industry, and the pharmaceutical industry.

He shows that innovation can accelerate economic growth and help countries to achieve

sustainable economic progress. Overall, Freeman's book The Economics of Industrial

Innovation makes a major contribution to the understanding of the role of innovation in

economic growth. It is an important reference in the economics and management of

innovation literature, and provides new insights and ideas for practitioners and academics

interested in issues of innovation and economic growth.

(Chesbrough, 2003) discusses the concept of open innovation, where companies

utilize ideas and resources from outside the organization to develop new products and

services. This open innovation concept is considered a solution to accelerate the innovation

process and improve firm performance. (Rogers, 2003) This literature review discusses the

process of innovation diffusion, which is how innovations spread in society and are accepted

by users. Rogers identified factors that influence the success of innovation diffusion,

including relative advantage, suitability, complexity, trial, and communication. (Tidd et al.,

2001) This literature review discusses innovation management, including how to identify,

develop, and capitalize on innovation opportunities. The book also discusses the role of

innovation in creating competitive advantage and firm growth. (Nizam et al., 2020;

Rachmayanti & Ady, 2018; Rahmatang et al., 2019) This literature review discusses the

factors that influence product innovation in micro, small and medium enterprises (MSMEs).

The research found that government support, quality of human resources, and access to

markets are important factors in driving innovation in MSMEs.

(Baller et al., 2016) discussed the relationship between information technology

innovation and global economic competitiveness. Dutta and Lanvin show that countries that

are able to adopt information and communication technology effectively will be more

competitive in the global market. (Wu et al., 2018) This study examines how innovation

contributes to the financial performance of a company in Taiwan's manufacturing industry.

The results showed that product and process innovation can provide significant benefits to the

company's financial performance. (Lee et al., 2019) This study investigates the relationship

between innovation and economic growth in Korea. The results showed that innovation

contributed significantly to Korea's economic growth, and this can be explained by increased

productivity and efficiency in the industrial sector. (Damanpour, 2014) This study discusses

the concept of innovation management, namely innovation related to the process, structure,

and management practices of the organization. Damanpour shows that innovation

management can help companies to improve performance and competitiveness, and generate

long-term benefits. (Zaelani, 2019) This study aims to analyze the effect of innovation on

increasing United States economic competitiveness. The results showed that innovation has a

significant effect on increasing economic competitiveness.

(Ch et al., 2020; Dwiastuti, n.d.; Firmansyah, 2022; Wahyuni & Kistyanto, 2013) This

journal discusses the relationship between innovation and economic competitiveness through

a literature review of various studies in the fields of innovation and economics. The results of

the literature review show that innovation plays an important role in improving economic

competitiveness. (Ichsan et al., 2022; A. H. Nasution & Kartajaya, 2018; M. I. P. Nasution,

2014) This study aims to analyze the relationship between innovation and economic

competitiveness in United States. The results showed that innovation has a positive effect on

economic competitiveness in United States.

(Anaya & Pollitt, 2021; Berthet et al., 2021; Kostis, 2021; Prakash & Sethi, 2021)

This journal discusses the relationship between innovation and economic competitiveness in

developing countries. This research shows that innovation has a significant influence on

increasing economic competitiveness in developing countries. A literature review of some of

these journals shows that innovation plays an important role in improving economic

competitiveness in various countries including United States. Therefore, the role of

innovation must be increased to improve the economic competitiveness of a country. Overall,

this literature review shows that innovation has an important role in improving economic

competitiveness, both at the national and corporate levels. Innovation can create added value

and competitive advantage for firms, and contribute to sustainable economic growth.

Literature studies on the role of innovation in improving economic competitiveness

have been conducted by many researchers in various journals both in United States and

internationally. For example, a study conducted by (Kurni Setyawati, 2020; Mandiri et al.,

2018; Sain, 2019) in United States showed that technological innovation is a key factor in

improving firm competitiveness, followed by product innovation, process innovation, and

marketing innovation. In addition, Research conducted by (Hilman, 2014) in United States

also shows that product innovation has a significant influence in increasing company

competitiveness. Another study conducted by (Lim et al., 2019) in South Korea shows that

innovation has a positive influence in improving the competitiveness of manufacturing

companies. The results of their research show that product innovation and process innovation

have a significant influence in improving the company's economic performance. In other

countries, research conducted by (Bögenhold et al., 2019) in Austria shows that innovation is

a key factor in improving regional economic competitiveness. They found that innovation can

improve productivity and product quality, as well as make a significant contribution in

creating new jobs. A study conducted by (Romijn & Albaladejo, 2002)) in the Netherlands

showed that innovation can have a positive impact in improving macroeconomic

competitiveness. They found that innovation can increase production efficiency and

competitiveness in international trade. Another study conducted by (Nambisan & Sawhney,

2011) in the United States showed that innovation can play an important role in improving

the competitiveness of companies in a constantly evolving and changing business

environment.

Research Methods

This research with library research, literature study method or literature review is an

analysis technique used to obtain a comprehensive understanding of a particular topic by

studying and evaluating existing literature, such as journals, books, reports, and other sources

relevant to the research topic. In the literature study on the Role of Innovation in Improving

Economic Competitiveness, the method used includes the following steps:



Defining the research question: The researcher should define a clear and focused research

question, which will help determine the relevant literature to review.



Searching for literature sources: The researcher should conduct an extensive and

comprehensive literature search from sources relevant to the research topic.



Literature selection: After compiling a list of relevant literature sources, researchers should

conduct a literature selection to choose the most relevant and quality sources for review.



Literature evaluation: The researcher should evaluate each literature source selected to

determine its quality and relevance to the research topic.



Literature analysis: After conducting a literature evaluation, researchers should conduct a

literature analysis to identify key findings from the reviewed literature.



Writing the review: Researchers should write the results of the literature review in the form

of a clear and structured report or essay, incorporating direct or indirect quotes from the

reviewed literature sources to support the main findings.

A well-structured literature review method can help researchers gain a more

comprehensive understanding of the research topic and gain new insights to help develop

further research ideas (Baker, 2006; Wildemuth, 2016).

Results And Discussion

This study aims to explore the relationship between innovation and economic

competitiveness and analyze the role of innovation in improving economic competitiveness.

The method used is a literature study by collecting data from various sources such as

journals, books, and other related documents. The results show that innovation plays an

important role in improving economic competitiveness. Innovation can help create added

value, produce new products or services, improve production efficiency, and enable

companies to overcome the challenges faced in an increasingly competitive global market. In

addition, innovation can also strengthen a country's competitive position by driving economic

growth and job creation. However, although innovation can provide many benefits to the

economy, there are still several factors that can affect the level of innovation in a country

(Bilbao-Osorio & Rodríguez-Pose, 2004; Cameron, 1996; Ulku, 2004). These factors include

lack of government support, lack of investment in research and development, lack of access

to quality human resources, and lack of linkages between the public and private sectors

(Apriliana & Nawangsari, 2021).

Therefore, it is important for governments, companies and society to pay attention to

the importance of innovation in improving economic competitiveness (Freeman, 2013;

Kazadi et al., 2016). Governments can provide support through innovation policies that

enable firms to gain access to resources and networks necessary for innovation. Companies

can also increase innovation through investment in research and development and

partnerships with research institutions and universities (Ichsan et al., 2022; A. H. Nasution &

Kartajaya, 2018; Wahyuni & Kistyanto, 2013). In addition, society can enhance innovation

by developing skills and knowledge in technology and strengthening creativity. Overall,

innovation plays an important role in improving economic competitiveness (Reswanda,

2012).

Therefore, stakeholders must commit to strengthening innovation through appropriate

support and collaboration. Innovation is considered one of the key factors in improving

economic competitiveness in the era of globalization and increasingly fierce market

competition. Innovation plays an important role in creating added value, increasing

efficiency, developing new products and services, and improving the quality of products and

services provided by companies. In the context of United States, innovation is considered as

the key in answering various challenges faced in developing the economy, especially in

achieving United States vision as a developed country by 2045 (Nasional & Nasional, 2017;

Purnomo, 2016).

To improve economic competitiveness, United States needs to strengthen the role of

innovation in its economic development. One of the innovation strategies that can be

implemented is to encourage the development of quality human resources in the field of

technology and innovation (Anggraini, 2020; Sulaiman et al., 2021). This can be done

through strengthening education, training, and research and development in technology and

innovation (COSTING: Journal of Economic, Business and Accounting, 2020; Gračanin et

al., 2015). In addition, United States also needs to strengthen cooperation between the

government, academia and industry sectors in innovation development. In this case, the

government needs to play an important role in provide support and incentives for innovation

development. Meanwhile, industry can play a role in innovation development through

investment in research and development and through partnerships with universities and

research institutes. Academia can also contribute to innovation development through research

and technology development as well as the development of qualified human resources (Ismail

& Nugroho, 2022; Marati, 2016).

However, there are still various challenges in encouraging innovation and improving

economic competitiveness in United States. Some of these challenges include low levels of

digital literacy and limited qualified human resources, as well as low government and private

sector support in innovation development (Firmansyah, 2022). In order to strengthen the role

of innovation in improving economic competitiveness, United States needs to strengthen

cooperation between the government, academia and industry, and develop qualified human

resources in the field of technology and innovation. It is expected that by strengthening the

role of innovation, United States can continue to improve its position in the global market and

have a positive impact on economic growth and community welfare (Marlinah, 2019; Nip,

2016).

Several previous studies have shown that innovation has a positive impact on

economic performance, especially in terms of economic growth and productivity

improvements. However, the implementation of innovations can face various challenges,

such as high implementation costs, limited human resources and technical expertise, and

regulatory and policy issues. Therefore, strong support from various parties, including the

government, private sector, and the general public, is needed to ensure that innovation can

provide optimal benefits to the country's economy (Arini et al., 2018; Halim, 2020; United

States, 2018; Rusdiana & Maesya, 2017). Encourage technology development and innovation

in key industries. The government can provide financial and technical support for key

industries, such as agriculture, manufacturing, and tourism to encourage innovation and

increase competitiveness. Improve the quality of human resources through education and

training (Dwiastuti, n.d.; Indayani & Hartono, 2020; B. D. Purba, 2018).

Quality training and education can help create more innovative and globally

competitive human resources. Enhance cooperation between the public and private sectors.

Cooperation between the government, private sector and research institutions can help drive

innovation and sustainably improve economic competitiveness. Improving access to financial

resources. The government can provide financial support through funding programs for

innovative small and medium-sized enterprises, to help them grow and compete in the global

market. Strengthen intellectual property rights protection. Intellectual property rights

protection can encourage innovation and research, by providing incentives for inventors or

researchers to create new innovations (Athia et al., 2018; Ma'ruf & Wihastuti, 2008; B.

Purba, 2020). By implementing the above solutions, it is expected to increase the role of

innovation in improving economic competitiveness, both at the national level (Syahputra,

2017).

The concept of innovation has been considered an important driver of economic

growth and development in today's globalized world (Dahliani & Ahwal, 2021; Supriandi,

2022). It has been recognized as an essential element for a country's long-term economic

sustainability and competitiveness. Innovation not only brings new products, services, and

processes, but also creating new industries and employment opportunities, resulting in

significant economic growth (Stiglitz, 2016; Zarrouk et al., 2017). The purpose of this

discussion is to highlight the importance of innovation in improving economic

competitiveness and the critical role it plays in economic growth and development (Bilbao-

Osorio & Rodríguez-Pose, 2004; Cameron, 1996; Lin, 2015; Stiglitz, 2016; Ulku, 2004).

Innovation is generally defined as the process of creating and implementing new ideas,

products and services that add economic value. The concept of innovation is broad,

encompassing multiple dimensions that include not only the technical aspects of innovation

but also its social, cultural, economic and political implications. Innovation can occur in areas

such as technology, business processes, organizations, and management practices, among

others (Freeman, 1982, 2013).

Innovation plays an important role in improving economic competitiveness.

Economic competitiveness can be defined as the ability of a country to produce and sell

goods and services that meet global standards at competitive prices. Innovation improves

economic competitiveness by increasing productivity, creating new markets, and promoting

economic growth. For example, in terms of technological innovation, it can lead to the

development of new products, which leads to increased sales, and thus increased productivity

(Ardyan et al., 2017; Khan et al., 2019). This, in turn, creates employment opportunities,

increased income, and wealth for the nation.

The United States, China, Japan, Germany and other developed countries have been

identified as having a competitive advantage in the global market due to their high levels of

innovation. These countries have invested heavily in research and development, providing

significant resources to drive innovation. The US, for example, has consistently ranked high

in the Global Innovation Index (GII) for several years. The country's innovation ecosystem is

characterized by strong research and development infrastructure, robust intellectual property

laws, and policies that support innovation. China, on the other hand, has made significant

investments in innovation in recent years and is fast becoming a major innovation power.

Japan and Germany, as industrialized economies, also invest heavily in innovation, leading to

their high competitiveness (Dobrzański, 2017; Dougall et al., 2014; Ma et al., 2019; Yang &

Greaney, 2017). In contrast, developing countries have lower innovation rates and lower

economic competitiveness. Innovation in developing countries is hampered by several

challenges, such as limited funding for research and development, inadequate infrastructure,

weak institutions, and limited access to technology. These countries also face challenges in

retaining skilled talent and experience brain drain (Azam et al., 2015; Itasari, 2020; White,

2017).

It is important to note that innovation does not always result in immediate benefits. It

is a long-term process, and the benefits can only be realized after some time. In the short

term, innovation may require significant resources, including financial investment, time, and

effort, which may not be immediately profitable (Alkhamery et al., 2021; EGBERI &

OMOGBIYA, n.d.; Hadijah, 2014; Puspasari & Rahardjo, 2017; Torre et al., 2021). In

addition, some innovations may not succeed, resulting in significant losses for investors.

Innovation may also generate some negative externalities. For example, the adoption of new

technologies may result in job losses for some workers. New technologies may also lead to

environmental degradation, as has been witnessed with the use of fossil fuels. However, these

negative externalities can be managed through effective regulation and policymaking

(Chesbrough, 2003; Huizingh, 2011).

In conclusion, the role of innovation in improving economic competitiveness cannot

be overemphasized. Innovation drives economic growth, increases productivity, and creates

employment opportunities, leading to dynamic and sustainable economic development. A

country's competitiveness is determined by its ability to innovate and develop products and

services that meet global standards at competitive prices. Developed countries are able to

maintain competitiveness due to their high level of innovation, while developing countries

lag behind due to several challenges. Therefore, developing countries need to invest in

innovation by creating an enabling environment, increasing funding for research and

development, and developing policies and regulations that support innovation.

Conclusions

Based on the literature review and research conducted, it can be concluded that

innovation plays an important role in improving economic competitiveness. Innovation can

help improve productivity, efficiency, quality, and product diversification, as well as expand

markets and increase the added value of a product or service. In addition, innovation can also

accelerate the process of economic development, improve people's welfare, and increase the

country's ability to compete in the global market. However, the implementation of innovation

still faces challenges, such as lack of access to capital and skilled human resources, as well as

less supportive regulations.

Therefore, efforts need to be made to increase access and availability of capital,

improve the quality of human resources, and improve regulations and policies that support

innovation. In the United States context, the government needs to encourage the development

of innovation through supportive policies and access to capital and sufficient human

resources. In addition, there needs to be cooperation between the government, research

institutions, universities, and the private sector in developing innovations that benefit the

United States economy. In this way, United States can improve its economic competitiveness

in the global market.