Industrial-innovative development trend in the economic sector

The current rising nature of competition in the market-based innovation system has prompted the growth of economies. The success in the industrial innovative revolution is becoming more reliant upon complementary knowledge and technical know-how other than the initial interdependency hypothesis. Successful and innovative firms are seldom alone spatially. Innovation and economic growth is often situated within a unique combination of firms tied together by knowledge and production flows. There is a clear trend indicating the growth of industrial networks because innovative interactions cross to other borders. In view of this, traditional industrial analysis can be criticized for its limited scope. By specifying strict boundaries for industries, the traditional type of approach fails to take into account the usefulness of interconnections and the knowledge flow within a network of production. The growth potential of an economy cannot be analyzed by ignoring the contributions of innovation that drives development; practically no single sector or firmwould succeed without innovation.