The important principle to run a business is to create and retain customers. Innovation and creativity are the only ways to produce the desired results and sustain one's business in the market, in an era of global recession. The present financial crisis is the best time for the CEOs to devote resources to a phase of leadership development. Learning and implementing innovation and creativity are required to keep the company moving even when things are inert. The financial slowdowns demonstrate predictable patterns and recession provides an opportunity for modifying financial behaviors and cutting expenses, thereby overcome market pressures.

Even powerful people feel the shocks during an upheaval. The shocks are visible even during a short recession. When the markets are disturbed, the effect shows. Unemployment is extensive, countries shut their doors, and companies shut their shops. Recession has the tendency to touch painful spots of business, and non-viable companies are closed. Stock markets create panic situation and even the leaders face big cash crunch. So recession warrants a soul searching amongst nations' economies and entrepreneurs. Most companies in the market usually react alike. They act on impulse and start laying off workers, cutting wages, putting trainings on halt, etc. Beating the difficulties of recession should be done through innovation. The CEO of a company is a pivotal point in the scenario. The best option that could be used is business innovation. An effective business leader is one, who uses the downturn to drive innovation. He understands very well that an innovative approach to a business is the only way to counter the panicked and the paralytic market.

Past experiences show that the companies that can continue to invest in their innovative capabilities even during tough financial times can perform well with reference to their growth returns. In this tough business climate, focus is crucial for innovation and growth prospect. But, most of the companies face a real dilemma, not knowing how to maintain that focus for innovation and manage cost tightly, while keeping growth options alive for the future. Chart 1 shows the comparative study of investment by different countries in the field of R&D.

Global CEO Magazine, Global Recessio, Advanced Micro Devices, AMD, National Electronic Distributors Association, NEDA, Innovative Environment, Fianancial Crisis, Global Financial slowdown.