EDITOR'S BRIEF

"We are committed to deepening the sources of competitive advantage for Ireland in the changing and globalising economy. We recognise the importance of innovation and skill development at all levels, and not just in our universities and research centres." So said the new Taoiseach Brian Cowen, in a speech introducing his new Cabinet.

It's good to see such a prominent mention for innovation and recognition that it needs to be promoted throughout society, not just at the upper echelons of the education system. For every great scientific breakthrough in a lab, there's an equally inventive mind at work on the factory floor or on the farm.

That's highlighted in this edition by the story of John Concannon. His initial business was created from solving a problem he encountered on the farm; a solution he thought others may find useful as well. His business has grown since then, but he has never forgotten the importance of pursuing new ideas.

The problem for many businesses, however, is that credit and capital has become harder to access. The tightening of credit lines is hurting businesses at a time when consumer confidence is weak. The overall IIB/Esri index of consumer sentiment in April dropped to its lowest level on record.

All this is forcing businesses to reassess their structure and methodology. That's always a worthwhile exercise in any industry. After years of growth, there is undoubtedly weaknesses and mistakes that were cloaked by overall success during the boom years.

The key to the future will be the ability to identify those problems and resolve them. An honest appraisal of the way we do things is vital if we want not only survive the dowturn, but be fighting fit for the economic upturn when it happens.

The same principles apply at a national level. Reform is as radically required in the public sector as it is in any private enterprise. When this latest economic slump comes to an end, it's important that Ireland can point to worthwhile changes made, and not simply thank our lucky stars for having escaped the worst of it.

[  innovation@irish-times.ie ]