B3. Leadership and Innovation
Innovation contributes to higher productivity via improved organisational efficiency and the development of higher quality and/or better value goods and services. In turn innovation is influenced by skills and also linked to enterprise (entrepreneurial activity).
The internal workings of the firm influence productivity (e.g. management and leadership, high performance working practices, and skills utilisation). Organisations exhibiting best practice of these will deploy other productivity drivers such as innovation, enterprise, investment, and skills more effectively.
