I agree with Ales, however I have a few points to add/argue.
Innovation does not always rely on capitalist ideas (e.g. see Nikola Tesla ... some of his inventions were hindered due to other interests) and there are other examples (e.g. in US electric cars were introduced in 1996 see General Motors EV1 but the project "blocked" by oil rich .....)
However I agree with Ales in many other aspects and I would add that you need to allow and support young and non-corrupted minds to explore and collaborate with each other for the purpose of innovation.
Innovation is an important driver of improvements in productivity. But what drives innovation itself? It is the responsibility of the government to look at the reasons for the significant variation seen in the rates of innovation of individual countries and sectors. Various factors influence firms’ incentives and ability to innovate, ranging from the prevalence of corruption to the availability of an adequately skilled workforce and access to finance. Certain factors like social respect for Entrepreneurship, sources of funding available , A cultural respect for innovation and strong willingness to limit bureaucracy are some of the key drivers of innovation to any country.