Nov 12

Some 42 per cent of senior executives in large UK companies see investment in new technologies as one of their key priorities to achieve business growth and cut costs over the next year, according to new research released today by BT Global Services.

via UK businesses prioritise technology to overcome the downturn, says BT survey.

Innovation

The truth is, sometimes we can get stuck in ruts and a recession can have the beneficial side effect of spurring innovation. While no one is recommending deliberate recession to foster it, innovation is turning out to be a major boost to economic recovery.

Aside from the marketing machine that drives the high exposure rate of technologies like Twitter and Facebook, new tech makes the scene as a viable incentive for workers, fresh avenues of design for product developers and a wellspring of ideas for managers.

Marketing departments will naturally have a bias towards those technologies that help them do their jobs, the quintessential Twitter boom is a good example of that. Marketers love Twitter. That’s not all there is to the story, however. New features and added capabilities designed to make products more attractive are the necessary resort of businesses that want to stay in business and attract new customers.

This is why, even when cash is tight, investing cash and capital in tech makes sense. Also highly relevavent is the relative stability of the tech sector during the recession compared to the service and manufacturing industries.

There is an old saying that you have to spend money to make money. That may never have proved more true than the case of this recession and the tech industry. It remains to be seen, in the long run, whether the tech industry’s stability and buoyancy during this recession might be an indicator that it won’t experience the kind of growth that the harder hit sectors might experience as a result of recovery, but for wise investors and business leaders, that might just be O.K. with them.

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