The recent economic hurdles have limited the ability for innovations to increase the investment and expansion capabilities for institutions[1]. This is because current market conditions present lower profit margins, reduced access to credit finances, fewer market opportunities and the possibility of the recession worsening.

These challenges have affected the use of innovations in investment especially for emerging markets[2]. These markets are experiencing inflations due to the decline in the flow of innovations in the financial market. This is because emerging markets largely depend on international investment to fund economic growth and create employment opportunities. The expectation is that increased expenditure and stimulus packages will motivate foreign direct investments in this year[3].

[1] O’Riordan, Research and Development, 6.

[2] UNCTAD, World Investment, 11.

[3] Ibid,

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