The innovation paradox: creating game-changing business ideas in a downturn

Companies may be tempted to cut their R&D spending, but that would be a grave mistake. Innovation not only limits the impact of short-term challenges, but helps ensure greater success and growth over the long term.

There are many reasons to be cheerful about the global economy, but conditions remain fragile, with inflation (while having apparently peaked) still elevated, interest rates going up (though at a slower pace), and geopolitical tensions remaining high. The World Bank recently said the global economy is “on a razor’s edge”.

In these challenging times, innovation is no longer merely desirable, it’s an out-and-out necessity. The paradox is that innovation can be particularly problematic during periods of economic uncertainty. For instance, companies may be tempted to pull back on research and development. Introducing new products or services can seem foolhardy when consumers are cutting their discretionary spending.

However, fortune favors the brave. Surviving…