Innovation and entrepreneurship are two of today’s trendiest buzzwords in business. Innovation is the proactive strategy which allows companies to push ahead of competitors, achieve peak levels of performance and shape future growth. Companies with a spirit of entrepreneurship are better equipped to create new product o erings, respond to market trends and develop strategic solutions to pressing challenges.
Together, innovation and entrepreneurship can develop pathways for financial reward. To stay competitive in today’s global economy, CFOs must become leaders in their company’s innovation ecosystem. Following are four strategies to keep in mind as you look to foster the game-changing ideas that will grow your bottom line.
Do Business Where Innovation is Encouraged
In our globalizing world, where a company chooses to do business can greatly affect the degree to which innovation and entrepreneurship can flourish within a corporation. Thus, a CFO’s influence in corporate site selection decisions can make a big impact on their company’s innovative growth. That’s why CFOs should not only consider locations with a competitive corporate tax rate, but also those that offer criteria to support innovation, including a skilled workforce, global access, an open mindset and a favorable regulatory climate for entrepreneurs. Focused on innovation at the national level, the Dutch government also actively promotes engaging in Research and Development (R&D) activities through specific tax incentives that support innovation throughout the entire R&D lifecycle.
Invest in Infrastructure That Enables Innovation
CFOs can further push the innovation meter in their favor by investing in resources, like digital and physical infrastructure, which enable creative thinking to flourish. As digital technology’s role in innovation continues to increase, CFOs must view technology expenses as a strategic asset, rather than a burdensome cost. When employees request more equipment, financial teams should work with IT to stay informed on which products will best encourage growth, address competitive needs and deliver operational efficiencies.