Peak innovation? Execs see support for new ideas dry up

Innovation is good for the economy and jobs. But when times are tough — politically or economically — companies might not be able to innovate like they used to.

And that’s exactly the problem many business executives are reporting these days.

A whopping 88 percent of them say they’re finding it hard to access venture capital, private investment and government funding that could support innovation. And 77 percent say their companies have developed much less appetite for risk lately.

Those findings are part of GE’s second annual “Global Innovation Barometer,” which surveyed nearly 3,000 senior executives in 22 countries.

“Innovation is a powerful lever to address the challenges of a growing world,” said Beth Comstock, senior vice president and chief marketing officer of GE. “It allows us to use resources more efficiently, produce more with less and deliver better technologies to help markets drive economic growth and better quality of life.”

All those benefits have become harder to come by in the current climate, she added.

“This year’s study confirms a lot of what we’ve been seeing in the global marketplace, that the uncertainties inherent in today’s economic environment are challenging business’ ability to innovate,” Comstock said.

The biggest complaint among executives questioned for the study related to what governments around the world are doing — or, rather, not doing — to support innovation in business.

“Investing in innovation is a critical piece of global competitiveness and it comes in many forms — from traditional R&D to new products, markets and business models,” Comstock said. “Cutbacks today will have reverberations on economic and social progress for years to come, and may seriously hinder a company’s ability to compete. Governments and businesses both need to do their part to shore up the fragile innovation ecosystem.”