Jeff Bier’s Impulse Response—Innovation Thrives Even in Tough Economy

The news in our industry certainly is discouraging these days.

Every week we read about high-tech companies succumbing to the economic crisis. Big companies are having big layoffs, and small companies are quietly disappearing. Start-ups are unable to secure funding. 

But amidst all of this doom and gloom, I have found a source of real encouragement:  I have been struck in recent weeks by the realization that innovation in the electronics industry is not dead.  Far from it.

This is important, because innovation is the lifeblood of our industry. As a result of innovation in the electronics industry, we’ve got entire industries today that simply did not exist a generation ago.  And even while the global economy is mired in recession, there will be opportunities for innovative new products—for example, products that help people and companies save money.

There’s no denying that many innovative companies are struggling or dying, and many innovative initiatives have been shelved or outright canned.  Yet I find that, like a hardy weed that keeps popping up through a crack in the concrete, innovation is amazingly tenacious.  Creative people are still finding ways to create exciting new technologies and products.

In a home office above his garage, one friend of mine is designing an amazing new consumer audio product. In a nondescript office with no exterior windows, a start-up company is feverishly developing an impressive touchscreen-based Internet device.

And at a few of the largest companies, the downturn has been recognized not only as a threat that requires belt-tightening, but also as an opportunity to change the game—to gain significant competitive advantage while competitors are chasing their tails. 

Genuine innovation gave birth to the electronics industry.  It’s always been essential.  Today it’s become even more important. If we can keep the innovations coming—and I believe we can—our industry can emerge from the current turmoil with even bigger opportunities ahead of us.

Jennifer Eyre White of BDTI contributed to this column.