More efforts needs to be focussed on ways and means in developing small and medium enterprises..This can be technology germinators and innovators.
There is no one type of innovation that will create jobs for youth. While some innovations, be it incremental or radical will create new business, thus, new jobs but at the same time they may educe jobs due to development of new technology transfering the job from men to machines and robots.
A mere 28 percent of small and medium-sized business (SMEs) in Germany - known there as the "Mittelstand" - are still investing in new products and innovative processes, an annual survey by Germany's development bank KfW found.
http://www.dw.de/worrying-trend-of-lower-innovation-in-germanys-mittelstand/a-18278231
ISSUES: Innovation to boost the economy and innovation to create jobs for youth; these issues are not related.
INNOVATION TO BOOS THE ECONOMY: There are two types of innovation, namely: (i) cost reduction innovation, and (ii) performance innovation. In both cases, in order to qualify as innovative, the outcome must exceed normal expectation--technically exceeds a preset confidence interval, for example;
Z = (Xi - X^) / S
... where Z = critical value for standard score at preset percentage confidence interval beyond which is classified as innovation, i.e. 90%, 95%, etc.; Xi = observed outcome value; X^ = mean value of observation; and standard deviation of the observation.
If looking for cost reduction, search for Z-value that moves beyond the lower bound at the left of the curve and vice versa for out put innovation.
In order to boost the economy, several factors must be at work: (i) innovation (above) occurred; (ii) size of player; (iii) scope of products or services provided by the innovator; and (iv) strategy of innovator. If (i) occurs and (ii) - (iv) do not exists, the new technology or procedure would soon be bought or forced out of the market by competitor. One characteristic of innovation is that it is "not a secrete", the soon it off sets equilibrium, new equilibrium will be established, i.e. the innovation soon becomes normalized and loses it special standing. Therefore, size, scope and strategy must be there in order to move the company to the next level. The effect on the economy will be seen when these factors are present.
INNOVATION CREATING JOBS FOR YOUTH: Generally, this does not exists. "Youths" by their nature is inexperienced members of the work force and re underaged. Job creation comes as the result of government policy, i.e. summer jobs. This is done in the US and Germany, for instance, where the state encourage companies top hire youth when school is out, i.e. summer jobs. If innovation argument enters the analysis, it is about innovative policy of the government, not innovation in technology or procedures of the company. The outcome of this policy is not so much about job creation or sizable economic value from youths with job, but the reduction of costs associated with nonproductive activities associated with youths, i.e. youth crimes. Where technical innovation creates real value for companies---seen through the balance sheet or income statement, the value of innovative policy of the state to create job for youth may be seen through its "social utility" as a common good---preparing youth for the work force after high school.
New technologies can also be responsible for a loss of jobs. As lower costs for enterprises can imply more automatization. In the future less manpower will be needed, everything will be done under the eye of the camera and robots will do the job. This is, I believe the dream of the big companies, the profit will be used for new technologies and consequently less labour costs.
As new technologies create also new jobs, the research get easy sponsored by the state. But in the long run it’s hard to believe that there will be work for everybody. In the past 90 % worked in the agriculture in Belgium, now this is less than 5 %.
It's also a fact that students find easy job during the vacation, because the social taxes are much lower for students, so they take in the jobs of other workers which is not really a creation of jobs.
In Belgium a lot of taxes come out of the labour that makes the cost very high and companies move to other countries where the taxes are lower and they can also ask subsidies to keep people at work.
Innovation and job creation in a global economy
http://pcic.merage.uci.edu/papers/2011/InnovationJobCreationiPod.pdf
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