The slow economy has again delayed the rollouts of new technology, risking future gains in output. Indeed, some promising developments may fall along the wayside.
Recent surveys of U.S. and European executives by Goldman Sachs Group and Gartner Inc. indicate that business spending on information technology will be flat to down slightly this year — on top of back-to-back declines the past two years. And spending on newer technologies will likely lag behind the eventual economic pickup, because such technologies are perceived as riskier, says Ram Bhagavatula, chief economist at Royal Bank of Scotland Financial Markets.
It is time to look at the emerging markets which are beginning to spend on technology as the drivers for new innovations.