Economic Slowdown Means Innovation Slowdown

The effects of the current state of the economy on consumers is well known. Higher prices on gas, food, and many other products and services have hindered consumer spending. The economic crunch has an impact in another area that is less noticeable to consumers but can have a significantly negative effect on our economy. That area is innovation.

Entrepreneurs rely on funding from venture capitalists and other financial sources to support their efforts to bring new products or services to market. But, a slow economy and uncertain credit markets have prompted these financial entities to pull back on their investments. As a result, budding businesses will have more difficulty raising money to take their ventures to the next level. Consumers will ultimately suffer as great innovations that lack funding to take it to the broader market will take longer to reach market, if they reach market at all.

Link: The New York Times – “Credit Crisis Spreads a Pall over Silicon Valley”

Author: Don Roy

Don Roy is a marketing educator, blogger, and author. His thirty-year career began with roles in retail management, B2B sales, and franchise management. For the past 27 years, Don has shared his passion for marketing as a marketing professor. Don's teaching and research interests include brands, sports marketing, and social media marketing. Don has authored over 20 articles in scholarly journals, co-authored two textbooks, and self-published three books on personal branding. Don is an avid hockey fan and enjoys running. He and his wife, Sara, have three sons. View all posts by Don Roy