Tuesday, September 1, 2009

TARP and Bailout Impact on Innovation and Technology

InnovationImage via Wikipedia

So what is the TARP and bailout strategy doing for innovation and technology advancement? Slowing it down, preventing investments for the most part. Yep, spending government money on companies that have failed to promote innovation and technology advancements won't get very far.

What is a Venture Capitalist to do? Invest in prosthetic limb technology. That is one place where the government is spending money but having trouble. (OK, that may be a good thing, since it is generally not economically easy to make a profit on something that about 100,000 people need). But spending money to support unions for products that people don't want (see the report on which models sold in response to the clunker deal)!

Actually this is one of the best times to be investing in new technology. The lead time for emerging technology to market puts most product releases about the time of the upswing of the economy (assuming you don't believe that the current administration will totally trash the economy for 8 years). If you have existing products, tighten your belts.


Reblog this post [with Zemanta]

0 comments:

Post a Comment