Over the past months parallels have been drawn between current economic conditions and those of the Great Depression era. While I certainly wouldn’t want to belittle those who are experiencing hardships or unemployment, I don’t think we are or ever will see a plight of that caliber again. Something I recently read however, did draw me to an applicable comparison between current conditions and that period of time.

A recent posting from the Financial Times offered some perspective on corporate spending cuts, including research and development.

“According to Andrew Wileman, a consultant, ‘R&D is not untouchable. ... the first step is to recalculate investment cases and eliminate R&D projects that no longer show a positive net present value return.’”

This comment scares me. Maybe my definition of “present value return” is different from Mr. Wileman’s, but I believe that eliminating (as opposed to reducing) projects based on short-term projections places companies at an even greater risk.

While product upgrades and next-generation improvements are key to profitability, product development and long-term success, it’s the truly innovative concepts that fuel dynamic growth and project companies from the tougher times.

Instead of robbing our economy and its consumers of the product innovation needed to drive it forward, I’d prefer to stand with those like Terence Kealey, vice-chancellor of Buckingham University, who was also quoted in the article.

He notes, “The survivors of this crunch ...will be those who have invested in R&D because they will be the ones with the new products.” Conversely, he feels R&D is untouchable.

I’m not looking to compare an individual I’ve never met with one of the worst criminals in our country’s history, so if you read this Mr. Wileman, please forgive me.

However, much like Eliot Ness exuded an Untouchable persona in defending what he believed in, and stood up to the pressures which dissuaded so many to turn their backs on the right path and take the easy way out, so should you or your company when it comes to ensuring the prospects of future product development.

Innovation is not easy. It commands the courage to make difficult decisions, but it can also make a legendary impact.