14 DAY TRIAL // While emphasizing that he means in no way to pass for an economist, Steve Ballmer, Microsoft's Chief Executive Officer, pointed out that, in the context of the global financial crisis, the economy has to be rebooted with a focus on innovation. Microsoft itself has been left suffering by the economic downturn, missing revenue estimates by $900 for the second quarter of 2009, and pledging not only to cut jobs, but also to reduce spending. However, there will be an area were the software giant is in fact ready to increase the amount of financial resources it is willing to pour in, namely Research and Development. The Redmond company will cough up no less than $9 billion for R&D in 2009, as Ballmer underlined that investing in innovation is a priority.
“Despite the tough economy - I might even say because of the tough economy - our company will continue to invest more than US$9 billion a year in R&D, because we think it's that R&D spending that will cause us to remain strong,” Ballmer stated during the U.S. House of Representatives Democratic Caucus Retreat. “People ask me, are you upbeat or not, and I say, about technology I'm super upbeat. The industry that we're in, information technology, stands at the threshold of again a new revolution. I joined Microsoft essentially for the PC revolution. The Internet revolution, we have the revolution of what I might call pervasive computing. Computers that are as thin and light as this on which you can have access to the world's information will be kind of expected over the next five and 10 years.”
Ballmer argued the need for what he referred to as a “fundamental economic reset.” Such a reboot would involve a comprehensive, and correct correlation between the level of spending and the value of assets. Microsoft's CEO indicated that only after the reset would the economy start growing again. Ballmer went on to call for a reducing of private debt, and a process of restoring confidence, with the stimulus package playing an important role for the U.S. And last but not least, “America really has to return to growth that's built on innovation and productivity, rather than leverage and private debt. That must happen,” Ballmer added.