A groundbreaking U.S. Commerce Department report could lead to new yardsticks for measuring growth. Changing the U.S. system of economic statistics is like turning a supertanker. You can do it, but it takes time. The report, Innovation Measurement: Tracking the State of Innovation in the American Economy, amounts to a sharp turn of the wheel.

It takes courage and vision to try out new ideas during times of financial difficulty, but Procter & Gamble Co. did just that. And the creative thinking paid off. Since 2000, the company's total sales have grown 40% and its profits have doubled.

P&G, once a very internally focused company, rejuvenated its growth through a program called Connect + Develop, an initiative through which P&G licenses or acquires products from other companies and brings them to market as P&G brands.

In the face of a global recession, companies often become risk averse and more cost sensitive, including cutting spending on innovation initiatives and investing in new product development. 

Bruce Nussbaum, assistant managing editor for BusinessWeek, advises against this – with good reason. In his words, “The ability to do sustained innovation is the one competitive edge left. Innovation is the driver of performance, growth and stock market valuation.”