"Innovation and R&D are always key drivers of economic growth, and American companies are betting on an economic recovery," said Raymond R. Cosner, chair of IRI's Research-on-Research Committee and director of R&D process in the Advanced Systems Division of the Boeing Company. "We are setting our sights on developing new products and new business opportunities. For years, IRI members have consistently reported that growing their business through innovation is their biggest challenge. They want to be ready when businesses and consumers are buying again."
Other findings from the annual R&D Trends Forecast for 2009:
- Many companies will be focusing on new product development.
- More than twenty percent of respondents are predicting spending increases of five percent or more on research supporting new product development.
- In an effort to maximize returns on spending, more U.S. companies will form joint ventures to share in the progress made. Many will form consortia to share the costs of pre-competitive university research, and some will establish contracts with federal laboratories in attempts to offset reduced spending in fundamental research.
- Nearly the same twenty percent predict spending cuts on research that supports existing business, along with expected reductions in directed basic research.
"The reduction of private industries' support for directed basic research shows the importance of public funding," said IRI president Edward Bernstein. "Now it is more important than ever for the government to step in and fill this gap."
IRI's position statement, issued last fall, underscores the importance of national policies in support of innovation. IRI recommends that the new President and Congress act to:
- Continue the critical role of government in funding fundamental research in universities aimed at advancing knowledge in science and engineering.
- Promote economic regulatory policies that will stimulate continued strong investment in R&D.
- Develop new technology policies that reflect the global nature of the marketplace and accelerating knowledge-based economy.
"Solutions to our most pressing national and global challenges - the economy, energy, the environment, and others - will require major innovations in our lifetime," continued Bernstein. "That is why IRI remains focused on improving the way we innovate."
