Leadership

How to Keep the Research Funding Spigot Open

By Jessica Stillman

Updated on: January 14, 2009 / 6:39 AM EST / MoneyWatch

The Find: For innovators who want to keep R&D money flowing even in tough times, people skills and salesmanship are just as important as sound science, argues a panel of experts.
The Source: An article on the advice of a panel of technology experts who recently spoke at the University of Pennsylvania's Executive Master's in Technology Management from Knowledge@Wharton.

The Takeaway: While tech geeks and science nerds are not generally known for their people skills, if scientists want to keep their innovation programs well funded during this recession they are going to have to acquire some. And if they don't, let the fate of Alcatel-Lucent's Bell Labs be a lesson to them. The labs' budgets were gutted this summer in light of the growing economic crisis.

So how can savvy technology managers avoid this outcome? First things first, don't be dismissive or rude just because you're an expert. Anthony P. Green, a vice president with first-round funding group Ben Franklin Technology Partners frequently sees scientists make these mistakes, "infuriating the investment community." Or as Eric F. Bernstein, a technology entrepreneur, puts it, investors "need to like your idea, but they also need to like you."

Beyond improving your schmoozing skills, Suzanne Taylor, portfolio director of corporate operations for Unisys, suggests you make an effort to show how the innovations you're working on will actually cut costs. Heads of innovation departments need to become adept at "making the case for maximizing productivity and reducing waste," Taylor said. In addition, for a greater chance of success, make sure that your project aligns with the company's key goals.

Lastly, don't despair. The case can be made. Some very successful companies "continuously invest in innovation and growth," said George S. Day, co-director of Wharton's Mack Center for Technological Innovation. "The best known ones are Samsung, American Express, Nokia. These companies are not cutting back on innovation."

For much more insight, read the compete article.

The Question: Should R&D budgets be cut in response to the economic crisis?

(Image of lab tech by NIOSH, CC 2.0)