Downturn hits R&D investment

Some really bad news from a new study that shows almost one third of all British companies currently are spending nothing on research and development. IT consultancy firm Portal surveyed 500 companies and discovered that although a majority (52%) recognised that innovation is critical to future success, the economic downturn has led to a sharp decrease in business investment in hunting new ideas, services and products. Worryingly, almost 14% responded by admitting that they had cut ‘their investment in R&D enormously’.

The bad news for the economy is that slashing R&D is just not a rational business strategy, even if everyone has to find ways to save money. Let’s face it, if we are to survive this crisis that politicians are now dubbing to be the equivalent of ‘fighting a war’, small businesses – the real heroes of the marketplace thanks to their commitment to making things happen regardless of personal cost – must receive greater encouragement from government to focus more on R&D.

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About Wanobe, the business knowledge network
Writer, journalist and broadcaster, sixty-something David likes nothing better than being with family and friends, eating out and drinking great wines, and scuba diving.

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