Innovation key to expanding trade

MANILA, Philippines - Countries including the Philippines should work together to boost innovation which is crucial in expanding trade rapidly, a top official of the World Trade Organization (WTO) said.

“This is clearly a two-way process: Innovation is an important driver for trade flows. New processes, products and services find their consumers — be them companies, governments or individuals — through trade,” WTO  director-general Roberto Azevêdo said in a recent public forum.

Azevêdo cited as an example the invention of the standardized container that facilitated the rapid transfer of cargo from ship to truck.

“The cost of shipping was slashed and trade grew exponentially.  Within 20 years, the percentage of the world’s countries operating container ports rose from one percent to 90 percent,” he said.

Azevêdo said innovation is also imperative in trade finance, especially for small economies facing the consequences of economic crisis.

Recognizing their importance, the WTO official said that trade and innovation are well-placed in government strategies for economic growth.

“Both trade and innovation have the potential to create new opportunities, by increasing productivity and competitiveness. The two of them have as well a role to play in promoting social inclusion and development,” he said.  

With this, Azevêdo underscored the need for countries to have openness to share and exchange in order for innovation to flourish.

“Resources needed for innovation, material or immaterial, are rarely found exclusively within the borders of one single country,” he said.