Cultivating a thriving innovation ecosystem

Emerson John-Charles

Innovation-driven economies are renowned for their diversification, export orientation and ability to generate crucial foreign exchange.

They achieve this by fostering micro-ecosystems within economic sectors that support continuous innovation.

These ecosystems enable sectors to identify fresh ideas, test, cultivate and transform them into new products and services that can be scaled and successfully exported to compete in international markets.

The latest Global Innovation Index report, however, reveals an alarming trend for TT, which now ranks 108 globally – a historic low following over 15 years of steady decline.

In 2008, the nation stood at the 68th place, dropping to 81 by 2013, 96 by 2018 and 102 in 2023.

With a notable six-place decline from 2023 to 2024, one must wonder where the nation will rank in five years if proactive steps are not taken to reverse this trajectory.

In comparison, neighbouring Caribbean nations Barbados and Jamaica achieved global rankings of 77 and 79, respectively.

Multiple other indicators further illustrate TT’s struggles in innovation.

According to Harvard's Atlas of Economic Complexity, which tracks the knowledge embedded in a country's exports, TT has seen a steady decline since 1995.

The UNCTAD Frontier Technology Readiness Index, a new global measure of technological preparedness, also reflects a downward trend for the nation.

Disturbingly, the Intellectual Property Office reports an average of only one patent filed by residents every year, while research and development investments consistently remain below 0.05 per cent of GDP – far short of the three per cent ideal benchmark for high-income nations.

Some years ago an assessment of TT's innovation ecosystem identified key weaknesses. There is a prevalent misinterpretation of innovation as being merely entrepreneurship and industry players often lack alignment with national research priorities. Furthermore, no single entity is mandated to strategically manage the ecosystem which has contributed to a fragmented, unco-ordinated innovation landscape with local players sometimes competing with each other.

These challenges can be distilled into five main areas: insufficient research and development investment, weak academia-industry collaboration, inadequate governance and co-ordination, weak innovation readiness among firms, and insufficient applications of research for solutions. These factors collectively hinder the country’s potential to drive economic growth, boost competitiveness, and ensure long-term resilience.

As the fourth industrial revolution brings unprecedented levels of volatility, complexity and uncertainty, the need for robust innovation systems becomes even more urgent.

For TT to remain competitive on the global stage, it is imperative to update the national innovation policy and establish complementary frameworks such as a national intellectual property policy and a national science and technology policy. These policies will provide a strategic foundation for decision-making and resource allocation. Furthermore, education and research efforts must align with the 11 frontier technologies identified in the 2021 UNCTAD Technology and Innovation report.

Establishing national innovation centres or centres of excellence in key sectors – such as high-value agriculture, energy engineering, ICT and maritime services – will serve as pivotal hubs to mitigate risks and drive impactful innovation.

The country must also confront the reality that it has historically struggled with managing innovation and maximising the financial potential of inventions produced by its talented and creative citizens. To address this, organisations across private, public and non-profit sectors should be encouraged to adopt the ISO 56001, the global standard for innovation management.

This framework is not geared towards specific products and services but fosters the right culture, strategies and systems within firms so that they can continuously generate new revenue streams through improved innovative capabilities.

Despite current challenges, there are promising indicators that suggest a new generation is committed to cultivating innovative capabilities. For example, Presentation College, Chaguanas, recently achieved third place in the international First Global Challenge robotics competition in Greece. The Intellectual Property Office successfully obtained a Geographical Indication for steelpan manufacturing. Additionally, Cariri's Shaping the Future of Innovation programme has awarded substantial grants, while local companies like the Agostini Group and Carib Brewery have established innovation departments and labs. The University of the West Indies’ STACIE department has launched its SAAIL programme to build industry-academia linkages, and the TT Bureau of Standards has initiated a National Mirror Committee for Innovation Management, adopting ISO 56001 as the country’s innovation standard.

Addressing the ecosystem’s weaknesses is essential to shift innovation from potential "innovation theatre" to a strategic force with tangible benefits that can reverse the current decline.

A robust innovation ecosystem will have far-reaching impacts on TT’s socio-economic challenges, including the heavy dependence on dwindling oil and gas revenue, the strain on the national pension system due to an ageing population, university graduate’s underemployment, the brain drain, limited access to foreign exchange and high crime rates.

By tackling these critical issues, TT can secure a sustainable and resilient economic future.

Innovation is not merely an option, it is the foundation of our survival and growth in an increasingly competitive global landscape.

The Innovation Association of TT is a non-profit organisation dedicated to promoting common issues for professionals and organisations who manage and lead innovation efforts in TT.

We are a member of the TTCSI and actively collaborate with them in advancing innovation at all levels.

This column was submitted by the TT Coalition of Services Industries (TTCSI).

The coalition's weekly columns will look at its operations, membership and overall contributions of the services sector to the socio-economic landscape of TT.