Innovation in Recessionary Times

Entrepreneurship.org (11/3, Marich) – 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.