Innovation drought?

June 8, 2009
Back to TopCommentsE-mailPrintBookmark and Share
Beneath Americaâ??s financial woes lies a lack of innovation, a recent BusinessWeek article argues. A paucity of breakthrough products could have triggered the nationâ??s borrowing binge and ultimately the financial meltdown, it says.

Hereâ??s the logic: A decade ago, the nation was enamored with scientific and technological breakthroughs. Gene therapy would cure physical ailments, fuel cells would power cars, and satellites would extend high-speed Internet to rural areas. Today, despite massive investment in the technologies, few new products have materialized.

As a result, wages stagnated. Also, exports slowed and imports surged, which forced Americans to borrow from overseas sources. The misplaced optimism played into Wall Street excesses.

Close to home, the innovation problem is on clear display at Eli Lilly and Co., which is hustling to find something big to replace patents on top-selling drugs including Zyprexa. Lilly stock, which stands near $34, is nowhere near the $80-plus where it traded early this decade.

BusinessWeek predicts the investment ultimately will lead to those long-expected breakthrough products. For now, lots of people are frustrated and the economy is still sluggish.

What are your thoughts?
ADVERTISEMENT
  • This is no surprise. The Looters have taken away the incentive for R&D companies such as Lilly, Pfizer, etc. This is only going to get worse as the current administration continues their war on private business.
  • Think about all the blue collar workers that got shafted over the last ten or so years. Our government leaders and corporations have sold the middle class out, so they could pad their wallets. I am all for people getting rich, but selling out your country is treason. They claim this global economy B.S., and if your not willing to go along with it, your either uneducated or afraid of change. Sorry a spaid is a spaid. Why have we become stagnate in developing new innovation? Cause of the aforementioned. Rich politicians and corporate executives do not get it anymore.
  • Once the company is losing cash, they cut people, they start cutting and cutting and eventually start cutting those who do R&D and run on basics. If we continue to run on basics and not focus on investing in new ideas, we will see a deeper recession and eventually a second Great Depression. Companies shall invest not just in foreign markets for R&D but Local R&D. Don't bring people in from other countries but use what we have here. Americans are innovative. Americans are creative. We can get ourselves out of the recession, we just need quite a few people to invest and take chances on new ideas.

Post a comment to this blog

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in IBJ editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by
ADVERTISEMENT
  1. With Pence running the ship good luck with a new government building on the site. He does everything on the cheap except unnecessary roads line a new beltway( like we need that). Things like state of the art office buildings and light rail will never be seen as an asset to these types. They don't get that these are the things that help a city prosper.

  2. Does the $100,000,000,000 include salaries for members of Congress?

  3. "But that doesn't change how the piece plays to most of the people who will see it." If it stands out so little during the day as you seem to suggest maybe most of the people who actually see it will be those present when it is dark enough to experience its full effects.

  4. That's the mentality of most retail marketers. In this case Leo was asked to build the brand. HHG then had a bad sales quarter and rather than stay the course, now want to go back to the schlock that Zimmerman provides (at a considerable cut in price.) And while HHG salesmen are, by far, the pushiest salesmen I have ever experienced, I believe they are NOT paid on commission. But that doesn't mean they aren't trained to be aggressive.

  5. The reason HHG's sales team hits you from the moment you walk through the door is the same reason car salesmen do the same thing: Commission. HHG's folks are paid by commission they and need to hit sales targets or get cut, while BB does not. The sales figures are aggressive, so turnover rate is high. Electronics are the largest commission earners along with non-needed warranties, service plans etc, known in the industry as 'cheese'. The wholesale base price is listed on the cryptic price tag in the string of numbers near the bar code. Know how to decipher it and you get things at cost, with little to no commission to the sales persons. Whether or not this is fair, is more of a moral question than a financial one.

ADVERTISEMENT