Executive Briefings

It's Vital to Continue Investing in Innovation, Even in This Downturn

Once the recession ends, some companies will emerge from the downturn in a better position than their competitors and start to outperform them. Two factors set these strong performers apart: a commitment to innovation and a drive to become immersed in emerging growth markets.

Investing in new initiatives during a brutal downturn isn't easy. While cost-cutting is often the norm, the mistake companies make is thinking short-term, having the savings flow directly to the bottom line, rather than reinvesting a portion into long-term opportunities. Without investments in innovation and new markets, growth will stall even as the economy rebounds.

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Once the recession ends, some companies will emerge from the downturn in a better position than their competitors and start to outperform them. Two factors set these strong performers apart: a commitment to innovation and a drive to become immersed in emerging growth markets.

Investing in new initiatives during a brutal downturn isn't easy. While cost-cutting is often the norm, the mistake companies make is thinking short-term, having the savings flow directly to the bottom line, rather than reinvesting a portion into long-term opportunities. Without investments in innovation and new markets, growth will stall even as the economy rebounds.

Read Full Article