Innovating through the storm

Growth may be slowing across the global economy, but CEOs’ commitment to innovation should not waver, advises Cyril Bouquet, IMD Professor of Strategy and Innovation.

With the global economy teetering on the brink of recession, CEOs might be tempted to turn from the risk of innovation to focus on maintaining a financially healthy business.  

However, this could be a huge mistake. Businesses that persevere with investment in innovation, even in economically challenging conditions, consistently outperform their peers in the medium term. As CEOs plan their paths through the recessionary storm, they should not neglect the imperative to nurture a culture of innovation. 

Surviving in the short term to thrive in the future 

Nervousness around the global economic outlook is growing. The IMF forecasts that global growth will slow from 3.2% in 2022 to 2.7% in 2023. CEOs are particularly sensitive to this threat: PwC’s latest annual survey finds that, as a group, CEOs are…