11. Innovation and Economic Value: A Prospective Benefit-Cost Analysis of the Fab Bhutan Challenge
- Author:
- Milan Thomas
- Publication Date:
- 10-2023
- Content Type:
- Journal Article
- Journal:
- Journal of Bhutan Studies
- Institution:
- Centre for Bhutan & GNH Studies (CBS)
- Abstract:
- National governments and international donors fund challenge competitions to foster innovation, but there is little evidence on the economic return to such investments. This paper conducts an ex-ante benefit-cost analysis to project the economic return on the 2023 Fab Bhutan Challenge, which was part of FAB23 Bhutan (the 19th annual international Fab Lab Conference). For the Challenge benefits side of the analysis, studies covering five topics were drawn from: crop yield improvements from climate adaptation (for Challenge 1 in Sarpang), cost and time savings from improved water supply (for Challenge 2 in Pangbisa), livelihood savings from human-wildlife conflict prevention (Challenge 3 in Limbukha Chiwog), revenue generation from cultural exports (Challenge 4 in Thimphu), and economic returns from special needs education (Challenge 5 in Rinchending). For the Challenge costs side, budget data were collected and interviews with challenge participants were conducted. Conservative estimates that account for the probability of some challenge solutions ultimately being nonviable place the economic return to Bhutan between $5 and $12 per dollar invested. The paper concludes by discussing opportunities for scaling solutions from the structured innovation challenge based on the global evidence, and implications of the study for Bhutan’s economic aspirations.
- Topic:
- Agriculture, Economics, Labor Issues, Water, Innovation, Productivity, Cost-Benefit Analysis, Human-Wildlife Conflict, and Special Education
- Political Geography:
- South Asia and Bhutan