Why? Because it’s the only way out – Innovation leads the way out of a recession.

New ideas are the foundation for all growth spurts in our economy. If you were to go back in history and look at what has driven our market to expand, it has always been disruptions in the economy that led to people to change the way they do things. In good times, change isn’t always that exciting, but when times get tough, innovation gets hot.

When a new innovation or idea comes around, such as combining a copier and printer in one machine, you recognize the idea could – and did – change the face of business. Most companies evaluating ideas during downturns will invest more of their time and assets to value a novel idea because they fear what would happen if an innovation got into their competitor’s hands. Innovation is highly valued during tough economic times; you could even say it’s an inventor’s bonanza! This fact has been recognized again and again by other sources, such as in the following blogs and articles:

http://www.sgia.org/feature_articles/execsum_july2008.cfm
http://www.innovationtools.com/Weblog/innovationblog-detail.asp?ArticleID=1194
http://www.innovatingtowin.com/innovating_to_win/2008/11/economics-and-innovation-what-you-said.html

At Davison, we see this as an opportunity to double the number of new products we license next year. I’m already hearing from corporate CEOs whose boards of directors and stockholders are demanding normal returns. They’re not willing to accept mediocre results. In order to secure the future, they are looking to reinvest more dollars into the innovation side of their corporations because they believe consumers are ready for change. There’s no better time than during a recession – consumers move to new products and corporations launch new products during these times. It is an opportunity to offer better value and products at a better price point while meeting the needs of consumers in new ways.

This is definitely a time for market expansion. Investors and boards of directors are all rallying behind this kind of thinking to push toward the future. Those who plan for the rainy day are going to take full advantage of it and capture market share. Corporations are looking for new and unique ideas like never before – It’s an inventor’s bonanza!!