Innovation leads to prosperity

After the Cold War, the history of the world entered a new era: Innovations in information technology and globalization have become two major forces propelling the global economy. Enterprises had ample opportunities to expand their business across borders, and their business models shifted from meeting market demand to creating new demand avenues. Reform, openness and innovations have since become three essential factors in creating prosperity in cities and nations. But to meet the challenges of the new era, we must replace the rules of the old game.

Two successful examples can be cited here to best illustrate that point. With its policy of reform and opening-up, China made a historic decision by abandoning its planned economy, and save it from severe difficulties and chaos. The United States established a brand new IT base in the West, which has for the past 20 years been an important driving force for its economy. In contrast, Japan, lost in memories of its past economic miracles, has failed to adopt new strategies for both the nation and its enterprises.

To achieve prosperity, enterprises should fashion new business models and seek new methods of development. In this age of globalization, innovations in business models are essential to start a business. A good business model can put innovations into better use.