Jobs Are Weak, Recession May Loom--Do Not Cut Spending On Innovation!

If you haven’t look at the stock market today, it’s sinking, thanks to a very weak jobs report that implies that the risk for recession is up considerably. I know from long experience that the knee-jerk reaction of 90% of top managers in the US in the weeks ahead, as they prepare their budgets for 08, will be to cut “excess” and “extraneous” expenses. And I know from past experience that investments in innovation and new products will tend to be cut. The rationale is always the same—we have to meet our numbers no matter what or Wall Street will kill us.

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