Innovation Policies in the Financial Crisis
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The current financial crisis is forcing many companies to rethink their innovation strategies and their approach to technology management. The almost automatic response to the crisis has been to increase the efficiency of their innovation processes. By downsizing R&D departments, making the innovation processes more lean and focusing more on incremental innovation projects with a more secure payoff. However, while this approach may increase the performance of the company for the short term - it may also inhibit the long term performance of the company. This paper shows that governments should complement its wide range of stimulus packages to combat the economic slowdown by adopting some long-term macroeconomic measures. It has indeed adopted proactive fiscal and moderately loose monetary policies and launched large-scale investments to enable the economy to recover faster, and taken steps to push for optimization of the national economic structure. But it should ensure that its interventions to rescue the reeling market should not go against market principles. The paper ends with the principles of policy agenda prepared by the OECD which can show the possible the way out of the crisis of different economies.
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