Can IT Innovation become a Tool against Fiscal Crisis?

Abstract

Economic recession has expanded during the last five years from U.S.A. to Europe and sprawls at an international level. Governments try to redefine their strategies and policies in order to recognize and deal with this unexpected environment, while they prioritize alternative methods in order to return to growth and to control national and supranational economics. Some of these strategic changes emphasize on innovation and research as the means to overcome this recession. The aim of this paper is to question and illustrate the connection between innovation and fiscal growth and in this order to explore whether Governments can capitalize innovation against fiscal crisis. Emphasis will be given on Information Technology (IT) innovation initiatives that are being undertataken with these updated strategies. Literature findings depict such an interconnection, while findings from the latest European strategies are compared to data from other countries regarding innovation's capitalization against fiscal recession and national downturn.