Between COVID and creative destruction

For many development economists, innovation is the biggest story of the last 200 years. Economic transformation has come not from trade or exploitation but from innovation. The mainstream innovation literature defines innovation as anything ‘new’ which creates economic value— essentially novelty being exploited in the ‘market’. Key innovation researcher from Kashmir, Dr. Sheikh Fayaz Ahmad has worked in the field of innovation studies since 2006. He earned his PhD in Science and Innovation Policy from Jawaharlal Nehru University-Delhi and is currently working as an innovation researcher at China’s top-ranking university, Zhejiang University. In a candid interview to Greater Kashmir’s senior editor, Nazir Ganaie, Ahmad says this tradition, ‘market’ and ‘exchange value’ is vital.  

Greater Kashmir (GK) Innovation. What is it and why is it so important, especially during global pandemic? 

   

Sheikh Fayaz Ahmad (SFA) To many economists, innovation is the biggest story of the last 200 years. Economic transformation has come not from trade or exploitation but from innovation. The mainstream innovation literature defines innovation as anything ‘new’ which creates economic value— essentially novelty being exploited in the ‘market’. In this tradition, ‘market’ and ‘exchange value’ is important. Of late, an alternative scholarship paints innovation as anything ‘new’ which creates value: use value; socially embedded reciprocal exchange value; and relational and non-relational intrinsic values like environmental value, well-being value, or signatory and social value.

Importantly, innovation does not always involve radical creations like a COVID-19 vaccine; it also includes incremental improvements, such as PPE kits or developing a manual ventilator or an oxygen concentrator using old car parts by applying the process of bricolage and frugality. We would be remiss to only consider universities, labs, and big science as innovation hubs. Historical breakthroughs like the spinning wheel, flying machine or steam engine did not come from scientists or marquee innovators but from people with no ‘scientific’ backgrounds.

GK: Why is the pandemic the right time to discuss innovations and bottom-up entrepreneurship?

SFA: The COVID-19 outbreak has had dire economic consequences. It triggered the direst global economic consequences since the South Sea Bubble burst in 1720. In India, for example, the virus’s second wave is deadlier than the first. People are gasping for air. Lifesaving medical equipment is running short. Formal innovations, it looks are not sufficient to meet the requirements of hospitals. Alternative inventive solutions from the grassroots need to be explored and recognized immediately. The bigger question now is how to fix collapsing structures and achieve some semblance of normalcy in post-covid world. Many believe that innovation is key—it is thought to be the holy grail for economic restructuring. But which innovation model will be best after COVID-19?

If vaccines and science are only available to the elite, then the current model will be unsustainable. More than 140 past and present world leaders signed a letter last year, arguing that the COVID-19 vaccine should not be patented so science could benefit all. I think COVID-19 will move us closer to inclusive, equitable innovation and growth models. We can opt either to live with antiquated models or experiment with novel, pro-people ones. We need to choose wisely.

GK: Kashmir has failed to create a vibrant innovation system? What kills local innovations and new startups here? 

SFA:  Some say we can’t create a favorable culture for innovations in Kashmir. Many believe that ‘conflict’ kills new thinking, but I don’t necessarily agree. Antagonism, resource constraints, and institutional voids can breed innovation. Consider this popular movie dialogue of Orson Welles from the Third Man: the Borgia plunged 15th-century Italy into 30 years of chaos. But Michelangelo, Leonardo da Vinci, and the Renaissance emerged in the same period. Meanwhile, Switzerland enjoyed peace and centuries of democracy but has yet to boast a prodigy like da Vinci.

Of course, I am not discouraging peace; I simply mean that conflict and poor infrastructure are not excuses. Broken institutions can trigger meaningful innovations also. In 1930, Edward House—Woodrow Wilson’s (then President of USA), closest adviser—declared China a ‘menace to civilization.’ He never thought that its extreme poverty, disease, and slavery would end, even proposing that China be placed under international trusteeship. Yet look at it today—many Americans see China as the world’s main innovator. Billions of Chinese have been lifted out of poverty and leapfrogged into amazing areas through secondary innovations. Even South Korea, with neither a resource base nor geographical or technological advantages in the 1960s, has become highly innovative. Breakthroughs in backwardness are possible, and a cyclical relationship between economic development and innovation can be achieved through suitable institutions.

GK: Is there any disconnect between government-run initiatives and startups in Jammu and Kashmir?

SFA: Honestly, the state does not seem to value a creative culture. Directionless policies and incremental steps won’t guarantee success. Innovations, like newborn infants, need to be nurtured. Robust actor–sector collaboration is required as well. Yet, Kashmir has a rich history of innovations. Our traditional industries are known for brilliant craftsmanship, and independent innovators are contributing greatly. We have a rich culture of social innovation and shared knowledge systems. The economy of imitation is strong. We have amazing clusters of fabricants.

As a case in point, in 2020, we launched a COVID-19 Open Innovation Challenge in Kashmir to solicit pandemic solutions using crowdsourced ideas. In less than 10 days, with no access to mechanical/electrical shops or to engineering or university departments, unsung heroes managed to innovate during lockdown. They developed more than 100 working prototypes of ventilators, digital apps, and PPE with second-hand materials. These types of ideas can inspire an innovation system rooted in self-reliance and local creativity with little need for technological dependence.

GK: Is the government’s role imperative in building a robust innovation system? 

SFA: A functional state can create breakthroughs. Many innovation scholars have talked about the ‘entrepreneurial state’ and the state’s role in nurturing an innovation culture. This thinking debunks the traditional understanding of the ‘state’ as the market-failure fixing agent. Yet the 18th-century railway expansion in France, putting a man on the moon in the 1960s, and the internet and smartphones have all been possible thanks to state nurturing.

But if the state is trapped in an ‘extractive institutional’ setup, new innovations and initiatives can shrivel. India’s failed handling of COVID-19 is a prime example: from being dubbed the ‘pharmacy of the world’ to gasping for air, its major pandemic policies are unsound and overly opinionated. A top-down policy approach, system disconnects, and recklessness might be to blame.

GK: What lessons can we learn from the ongoing pandemics to build a regional innovation system in Kashmir?  

SFA: A story of two innovative brothers is the perfect answer to this question. The American brothers Wilbur and Orville Wright are celebrated as the pioneers of aviation. On December 17, 1903, the Wright brothers flew their plane for 59 seconds at 852 feet. They had monopolized the modern aviation industry two years later. But despite flying the first machine, the media snubbed them, universities ridiculed them, and men of influence mocked their ingenuity. This lack of appreciation drove them to move to Europe where they became celebrities, hosted by royals. They were profiled in the media as heroes and became quite wealthy before returning to America in 1909.

In Kashmir, 26-year-old twin brothers Refaz Ahmad Wani and Ishfaq Ahmad Wani from Soyan, Kokernag are now enjoying a similar story. These sons of a laborer have developed prototypes for more than 30 innovations, won prizes in Delhi and internationally, and were awarded second place in the COVID-19 Open Innovation Challenge. Yet they are struggling to find a local platform and support system. Many have doubted their ingenuity, and like the Wright brothers, the twins have been dismissed as amateur inventors. Their low socioeconomic background has prevented them from scaling up. Reaching the broader market seems a pipe dream. Universities rarely host independent innovators, and the state is often blind to such creative genius.

Basically, we need to realign our priorities. Top-down policymaking is not working; it is as dangerous as COVID-19 itself. Inclusive thinking is a must. As far as innovations are concerned, funding only formal structures like universities and firms while ignoring non-formalized knowledge systems would be a grave mistake. India’s informal economy sustains 90% of its workforce. Formal economic structures have nearly crumbled. Appropriate incentives are needed for innovations to grow; a ‘one-size-fits-all’ policy approach should be avoided.

GK:  Last year, you and other colleagues organized the COVID-19 Open Innovation Challenge. Any major takeaways from that? 

SFA:  One goal of the COVID-19 Open Innovation Challenge was to create a springboard for local innovators. A few months later, I am happy to see that India’s and Kashmir’s leading news agencies are profiling Kashmir innovations. A case in point is Unique Waseem. I first met him in 2011, and he won 2nd prize in the Medical Devices category in the Challenge. From the Hindustan Times to CNN and Brut, his work has been featured on many platforms. This recognition has earned him technical and financial assistance from Kashmiris outside India. Leading doctors and scientists have also offered their support.

Even if these innovators have not received awards, they experienced a sense of ‘warm-glow’ by helping to mitigate the COVID-19 crisis. Abraham Lincoln was awarded a patent in 1846 for his solution to help ships navigate shallow waters using inflated waterproof ‘fabric bladders.’ Although his innovation was never used, when he was granted the patent, he declared that the award ‘added the fuel of interest to the fire of genius.’ The collective community appreciation these unsung heroes from Kashmir have received will surely add much-needed fuel of interest to their fire of genius. Imagine the collective dividends we will reap if we continue to celebrate true genius and stop glorifying thugs.

GK:   Research works?

SFA: After completing my PhD in Science and Innovation Policy from Jawaharlal Nehru University-Delhi. I am currently working as an innovation researcher at China’s top-ranking university, Zhejiang University. I recently co-authored a book, Informal Sector Innovations: Insights from Global South, published by Routledge, Taylor and Francis, Oxford in 2015.

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