I recently read a great article from Business Week‘s head economist Michael Mandel. In the article he looks at the impact – or rather the non-impact – of innovation in the United States and world economy. He even suggests that the lack of commerialized innovation over the last decade could be considered as a contributing factor in the prevailing economic climate.

I’ve read and listened to many good debates on the causes of the current economic climate (including this one from CUNY). This is the first time that innovation, or the lack of it, has been suggested to have had such an impact.

There have been many commentators appealing to the business community to keep investing in innovation. But if we take Michael Mandel’s assertions to be correct it leaves us with one important question:

Does “business” actually have the capacity to deliver on the innovation promise?

One good thing from the current financial situation that might help is that businesses are being forced to be more effective through efficiency. There’s no fat on the plate anymore!

This is and will continue to force changes in thinking, changes in business models, and hopefully changes in how innovation is viewed, valued and invested in by business.

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Tags: Business, Innovation, Problem Solving, solution