Is slowdown redefining innovation?

PUNE, INDIA: “With the tight R&D spends of today, optimization is a greater need and so is for innovative product ideas,” Kishor Wikhe, senior vice president, Head, Pune Operations.

“CIOs will ask for something that can help them leapfrog and not just a step up. ISVs hence, are getting silently ready to plan for a leapfrog scenario while everyone thinks it's time for cut on R&D and product development." president of GlobalLogic, Shashank Samant.

These views seem to be seconded by a BCG survey titled ‘Making Hard Decisions in the Downturn’. In this sixth annual global survey and report on innovation, Innovation 2009 by Boston Consulting Group (BCG) majority of companies (58 per cent) will boost innovation spending in 2009.

The Asia-Pacific companies have the most aggressive plans, with 73 per cent of respondents planning to increase spending and 35 per cent planning to do so significantly (that is, by more than 10 per cent), as revealed in a news report.

Technology and telecommunications companies are the most bullish as 68 per cent of tech and telecom respondents said their company would increase spending, and 32 per cent said it would do so significantly. About 64 per cent of the more than 2,700 executives among respondents said they consider innovation a top-three strategic priority, one critical to their company’s long-term competitiveness.

At the same time, there are new dimensions from the other side too. About 14 per cent of companies hinted that they plan to cut innovation spending in 2009, with North American companies sitting high on this list.

As far as industry types go, travel, tourism, and hospitality companies and financial services companies were also among those who do not harbour an upbeat eye on innovation.