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APR 6

R&D Spending Holds Steady in Slump

Big Companies Invest to Grab Sales in Recovery; the iPod Lesson

Wall Street Journal, April 6, 2009 — Major U.S. companies are cutting jobs and wages. But many are still spending on innovation.

Wary of emerging from the recession with obsolete products, big U.S. companies spent nearly as much on research and development in the dismal last quarter of 2008 as they did a year earlier, even as their revenue fell 7.7%, according to a Wall Street Journal analysis. The sampling looked at 28 of the largest U.S. R&D spenders, excluding deeply troubled auto makers and the drug industry, where R&D spending is dictated by government requirements.

Category: Innovation
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FEB 4

How to Cut Out Unnecessary Innovation

During a recession, companies must prioritize investments on new products and services. Here are a few how-to tips, including what to avoid

BusinessWeek, February 4, 2009 — When times get tough, one of the first things we do is think about what we can do without, like cutting latte consumption from five a week to two. Similarly, companies say no to some things to conserve resources and ensure remaining resources are focused on the right things.

Companies looking to shut down some innovation efforts have to evaluate their portfolio of what's in the process. Prudently pruning this portfolio will help to ensure that resources flow to the right ones. Here's a look at two typical approaches executives often take—and a third that might work better.

Category: Innovation
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