Innovation is being suffocated

The Associated Press recently wrote an article about the current recession's toll on innovation. The US Patent Office is seeing this first hand. Companies aren't getting the capital they need to innovate and invent and come up with new creative ideas. Venture capital investments have plummeted. Therefore, the applications for new patents are down.

Robert Budens, president of the Patent Office Professional Association made the comment, "Innovation is the way America generally gets out of downturns. At the Patent Office, we're one of the key drivers of stimulating innovation and for us to get to the point where we might have to furlough or have a reduction in force would just be horrible."

Has your company cut down on innovation? What is your reaction to this statement?