More than a third of corporations cut their innovation budgets due to the Covid-19 pandemic, and around a third of companies stopped or decreased their collaboration with startups.
That is the stark picture painted by a recent study by Corporate Venturing Network, Tilburg University and Rotterdam School of Management, which conducted two surveys with a group of 40 to 50 mainly Dutch and Belgian companies.
One study was done in the early stages of the pandemic last April, and another in October when the pandemic had been ongoing in Europe for more than six months.
Despite many corporate innovators and strategists saying the pandemic was a catalyst to accelerate change, the brutal truth is that corporate budgets did completely the opposite. A large portion of companies went into survival mode and cut their spending on new initiatives — especially working with startups.
A third of companies cut budgets
This chart shows how companies were thinking about budgets in…