Time to lead the economy

Time to lead the economy

BY RAY BINGHAM President and Chief Executive Officer, Cadence Design Systems Inc., San Jose, Calif.

Technologists understand that although economic activity sometimes may slow, the pace of technological change does not. This is good news for all of us who pride ourselves on making it possible to take great ideas and turn them into real products. Intel Corp. and Texas Instruments Inc., for example, are increasing their R&D spending while aggressively cutting expenses and head count. A recent Goldman Sachs semiconductor industry report indicated that each of the sector companies it covers is expected to increase R&D spending in 2001. Further, although total revenue for these companies is likely to decline 20 percent from the prior year, R&D spending is expected to increase 11 percent.

Investing in the promise and potential of new technology creates opportunities for the entire design sector. It also proves that the technology sector is preparing to help lead the economy from its doldrums. Design capabilities displayed at the recent Design Automation Conference are evidence that our industry continues to address customers' needs, despite any economic woes or wobbling.

As industry leaders, our responsibility is to inspire innovation at all levels. This means, for example, involving ourselves in our community's education systems by helping our children explore their questions, challenge themselves and become tomorrow's engineers. It means reinforcing in our work force the belief that each individual's ideas exist as treasures with a tangible value to both corporations and society at large.

Ideas, our intellectual property, make our industry prosper. Indeed, the foundation of our growth is our employees' ideas, nurtured and grown into products and revenue from which our customers, our employees and our companies benefit.

Many fresh ideas abound, which is one reason why we see significant signs of strength for the design industry. The steep decline in semiconductor sales creates a new urgency-and opportunity-for innovative designs. Chip makers know they have to create entire new chip geographies, and the design industry is uniquely positioned to help develop this technology with the semiconductor manufacturers. Our software enables the system-on-chip era.

Based on early indications, there is every reason to believe that the recovery of the economy, when it develops, will be dynamic and exciting. Once the innovations now in our industry's labs become products, they will produce significant new revenue and growth opportunities.