Innovation in Recessionary Times
It appears that the recession has forced the corporate sector to improve its approach to innovation. Booz & Company’s annual study of corporate R&D spending revealed that most companies have continued with their innovation programs despite the economic downturn, and that many are even increasing their spending on innovation.
Here are a few highlights from the report, Profits Down, Spending Steady: The Global Innovation 1000
• More than two-thirds of companies in this year’s study maintained or increased R&D spending
• R&D budgets rose 5.7 percent in 2008
• 70 percent of the companies surveyed plan to maintain or increase R&D outlays in 2009
• Spending patterns varied by industry. Nine of the top ten R&D spenders in the auto industry cut back, but software and Internet companies generally bolstered research efforts. Eight of the top ten R&D spenders in the software and Internet sector increased their spending.