In an article published this week (in German only), Bernhard Dachs from the Austrian Institute for Technology and Bettina Peters from the Zentrum fur Europaische Wirtschaft (ZEW) make the case for investing in innovation as a means for recovery. Past crises show that pro-cyclical companies tend to reduce their R&D during a recession. Main reasons are uncertainties for the future and a doubt whether new and innovative products will be in demand during and just after a crisis. However, the companies that see the crisis as an opportunity increase their spending in innovation (about one third of the German companies increased their innovation spending during the financial crisis in 2008/09).… Read More
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