Microsoft will invest $9 billion in R&D in 2009

Jun 18, 2009 13:44 GMT  ·  By

Microsoft Chief Executive Officer Steve Ballmer indicated that innovation and education were critical aspects of success for US companies and for the economy as a whole. Ballmer spoke at the National Summit in Detroit, Michigan, and emphasized the need for long-term strategies rather than a focus on pulling a short-term profit. The Microsoft CEO argued that new ideas would offer a way out of the economical downturn, and that in this regard, innovation was key for fueling growth. Microsoft itself is committed to driving innovation, with no less than $9 billion pledged to Research and Development in 2009, $1 billion more than in 2008, despite the fact that the company is indeed feeling the impact of the global economic crisis.

“We really do have to deepen our commitment to innovation by investing more in research and taking a longer term view of the role that innovation plays in creating business success. Too many American companies I think have overemphasized – sounds like a funny thing to say – but overemphasized short-term profits over the kinds of long term investments in R&D which are necessary. And too many American companies failed to focus in on the type of business model innovation that really turns technology into successful, sustainable and profitable products,” Ballmer stated.

At the same time, Ballmer stressed the need to invest heavily in the sources of innovation. The Microsoft CEO made it clear that for him investments in innovation and in people were synonymous. In this regard, the effort has to be focused on education, Ballmer noted. He pointed that an emphasis in math and science was critical to improve the quality of students.

“Fundamentally, investing in innovation is about investing in people. It's about hiring people, developing people, letting them do their best work. It's about aligning people's creativity and imagination, and encouraging people to dream up new ideas and to discover new ways of doing things. Our workforce is the reason this country has been so good at innovation for so long, and the strength of our workforce depends on one thing: the quality of the education system,” Ballmer said.