Steve Lohr in the New York Times looks at how innovation rises in downturns. Are the various stimulus packages a roadblock to innovation?
Steve Lohr in the New York Times reports R&D budgets increased for 900 of the United States’ 1,000 largest corporate spenders on research and development.
What stands out is how patent applications rise during economic downturns with an increase of 25% in the 1929-32 period. Steve goes on to point out;
The Depression years yielded fundamental advances in technologies of the future like television, nylon, neoprene, photocopying and electric razors, according to the Thomson Reuters analysis.
A similar trend is true around later, far shorter recessions, when basic work on personal computing and later Internet-related technologies were done.
In this respect, economic downturns are necessary as they clear out the old, inefficient industries and allow new ideas and businesses to take hold.
While governments had to do something to avoid a massive depression when the capital and trade market froze in late 2008, is the propping up of debt laden industries like banks, housing companies and auto manufacturers going to act as roadblock to new ideas and businesses?
Just a thought.
The Depression years yielded fundamental advances in technologies of the future like television, nylon, neoprene, photocopying and electric razors, according to the Thomson Reuters analysis.
A similar trend is true around later, far shorter recessions, when basic work on personal computing and later Internet-related technologies were doneThe Depression years yielded fundamental advances in technologies of the future like television, nylon, neoprene, photocopying and electric razors, according to the Thomson Reuters analysis.
A similar trend is true around later, far shorter recessions, when basic work on personal computing and later Internet-related technologies were done.
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Author: Paul Wallbank
Paul Wallbank is a speaker and writer charting how technology is changing society and business. Paul has four regular technology advice radio programs on ABC, a weekly column on the smartcompany.com.au website and has published seven books.
View all posts by Paul Wallbank