1.

Innovation Innovation is thus essential if countries and firms are to recover from the economic downturn and thrive in todays highly competitive and connected global economy. It is a powerful engine for development and for addressing social and global challenges Innovation is defined broadly as "bringing any new, problem solving idea into use." CREATIVITY and innovation are the major forces that shape our world today and will continue to do so in the future. The shift of the economic landscape from an industrial-based to a knowledge-based economy has increased tremendously the need for people to be creative and innovative. to be innovative means to introduce change in how society does things. the importance of creativity and innovation has been much discussed in relation to Malaysias pursuit towards a developed country status and high-income economy. At present, the economic, environmental and social crises pose a challenge to us in changing our mindset and transforming the way we think and act. Undoubtedly, creativity and innovation can spur society forward towards greater prosperity. Innovation is widely recognized as a key ingredient of productivity success If policies to promote innovation are to be effective, they need to take account of the ways in which innovation takes place today. To transform ideas and inventions into innovation requires a range of activities, including organizational changes, firm-level training, testing, marketing and design. supply creating demand, and not the other way around

3. Change to remain competitive As the market rapidly change, organization must be sensitive and adapt to continuous change of globalization to remain competitive. Malaysia, as the developing country plays a major role in competing with other developing and developed countries which according to Dr J M sampath, the

management guru, its no longer the survival of the fittest but the survival of the wisest. The market becomes free from government interference or protection that customers demand for best product at lowest price. Developing countries could be specializing in servicing and manufacturing when the west has already been the design specialist. In order to lead the market, change needs to be in place and instill in leadership characteristic, be the neither employer nor employee. Ability to learn, improvise products before change occur = innovative, lead to increase in productivity. The core factor in change is how the people respond to change. Focusing on root causes (individual and organizational values) would lead to permanent change while paying attention to the effect of change would be temporary solution. Bottom line, change requires individuals value to match with organizational vision and mission to obtain success. More importantly, the system in which we live in must be transformed to provide an enabling environment for the both sides of our brain to work, so that everyone in our society can contribute to the nations future by being creative and innovative, and propel the country into a developed nation status and a high-income economy.