Prof Olivier Crevoisier discusses the impact of cultural values on economic legitimacy at INSEAD policy breakfast

The session, attended by senior executives and leading scholars, from government and private institutions, looked at the future of traditional Swiss watch making and its enduring legacy, securing its place in an ever evolving and increasingly technological market.

Prof Crevoisier said: "Today's innovation in highly developed countries largely consists of transforming cultural values and ways of life into sellable products and services. Traditional activities like the watch industry, as well as new ones like the green economy or the financial industry, all have to find some legitimacy in public debates in order to create economic value."

Prof Crevoisier's research looks at the impact of high costs in developed countries where innovation consists of commodifying cultural values and lifestyles. From traditional goods such as a Swiss watch to an organic cheese or new technologies such as a photovoltaic panel, the value of all goods has social and cultural content.

Dr. Sami Mahroum, Academic & Executive Director, INSEAD Innovation and Policy Initiative added, "For Abu Dhabi, the Swiss watch making experience provides yet another example of how countries can innovate and renew within their established industrial legacies."

Cultural value is dictated by the consumer and in turn both influences and draws from trends, fashion, traditions, opinions and ethics. Companies and the media drive many of these, promoting debate among the likes of experts, connoisseurs and NGOs, either criticising or supporting new trends, products, technologies or new companies.

Such debate can turn social values into economic values as long as there is the support from public opinion. This can be seen in many important fields of innovation such as sustainable development, health, higher education, nutrition, leisure and sports and cultural activities.

The policy breakfasts series began in 2010 as part of the INSEAD Innovation and Policy Initiative (IIPI). The early morning seminars focus on current policy issues through the eyes of academics and practitioners in industry and government. The series is aimed at professionals concerned with government policy.

The three primary focuses of the IIPI are problem-oriented policy research, outreach activities and the development of learning materials.