Question

Answer the following 5 questions in 250 words or more. Be detailed and give examples when possible.

-Explain Oracle's top ten recommendations to encourage and accelerate innovation. Do you agree or disagree with any of their recommendations, Why?

-What is the Poverty Trap? What are the major issues the government faces when dealing with problem?

Answer 1

1.

Oracle’s top 10 recommendations to encourage and accelerate innovation are:

1. Tax-breaks for new age innovative companies (startups especially)
2. Shorten Time-to-Market.
3. Make rules and regulations for IP protection
4. Increase investment in R&D, especially domestically
5. Increase and improve relationships with universities and other businesses
6. Invest in learning for future skill building
7. Use and make the best use of technology to drive business value.
8. Make working patterns more flexible
9. Avoid brain-drain. Retain high skilled workforce at any cost.
10. Approach innovation in a structured manner

Yes, I completely agree with the above recommendations because of today’s VUCA world where the world and the markets are becoming more Volatile, Uncertain, Complex, and Ambiguous due to which there is a constant need to learn and evolve continuously by organizations today. A very famous example is Moore’s Law which states computing power doubles almost every year, which means that gadgets which are 5-6 years old may not be relevant today and thus marketing and production efforts of such products need to account this in beforehand so that there is excess inventory left.

2.

Poverty Trap is a "vicious circle" situation which is kind of spiral. It doesn’t let poor people escape it making it a trap. It is mostly experienced by developing countries where whatever they poor people become forced to stay in poverty in spite of constant efforts by their governments to alleviate their poverty.

There are a lot of factors which lead to poverty traps like poverty alleviation programs of the sort of monetary aid to unemployed/poor people for some time. However, sometimes people become overly dependent on it and the plan fails, leading to the people becoming poorer rather than coming out of it. Other factors like corruption, education systems, poor planning and infrastructure, lack of proper education system, exploitation of environment, etc.

Governments of developing countries face this vicious circle in the sense that to alleviate poverty, they need to increase the level of education in the country, which requires more investment, which requires more capital and more borrowing, leading to more debt and poverty scenarios in the future for the whole country, leading to high interest rates and thus causing inflation which lets buy people less using the same money, thus in a sense becoming poorer than earlier. If systems are not managed properly, the whole nation becomes poorer and the most affected are the poor people who are the bottom of the pyramid.