How global unrest will impact innovation in 2023 • Alaska Green Light Blog
#global #unrest #impact #innovation #Alaska Green Light Blog Welcome to Alaska Green Light Blog, here is the new story we have for you today:
David Magerman Contributor
The global economic and political turmoil of the past year has had a significant impact on business innovation in the technology industry and beyond.
The global struggle with COVID, the Ukraine-Russia conflict and the economic fallout from the COVID lockdowns and supply chain disruptions have all combined to create a painful combination of global recession, global inflation and unpredictable instability in the global economy.
All of these factors have led to a tightening of the corporate belt, layoffs and hiring freezes, and a more conservative investment stance from the investment community. Inevitably, these changes will have a chilling effect on innovation for years to come.
However, there may be a silver lining when it comes to the prospects for innovation. In a way, these market forces could actually serve as accelerators for creativity and technological progress.
In this climate it might be easier to buy and integrate rather than trying to build from scratch.
Short term effects
In the short term, the impact of this negative economic development and political instability will be felt on the innovation hubs in both the corporate and start-up world.
Companies are likely to cut spending on internal and external innovation. That means they will reduce their R&D budgets and likely focus their R&D on projects that can directly impact profitability at the expense of long-term visionary projects.
Businesses will also spend less on collaborating with other innovators and making expensive purchases of advanced technology. We expect more early-stage acquisitions as companies weaken and companies look to develop new technology cheaper by buying at a discount rather than building from scratch.