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P&G CEO calls for more investment in innovation

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By Chelsey Levingston, Staff Writer 9:14 PM Tuesday, September 27, 2011

CINCINNATI — Businesses and organizations in the region need to invest now in innovation to grow in the future, according to the chief executive officer of Procter & Gamble.

P&G innovates with the purpose to improve the lives of its customers, said Chairman, President and CEO Bob McDonald.

The Cincinnati region is behind in patents granted and the number of business startups per person. But a lesson the region can learn from one of its biggest companies and an industry leader is to put the time, energy and money in commercializing new ideas, McDonald said.

“Innovation wins decades and there is never a more important time to invest in innovation than when economic times are difficult,” McDonald told a sold-out crowd Tuesday at Music Hall.

McDonald was the main speaker for the Cincinnati USA Regional Chamber’s annual lunch. He spoke to approximately 800 people about innovation as the primary driver of business, financial and economic growth.

Innovation is key to improving the quality of life for people all over the world, said McDonald, who is also co-chair of Cincinnati Business Committee’s Regional Innovation Task Force. Most challenges people face today could be solved through innovation, but innovation isn’t happening boldly enough in as many areas as McDonald said he thinks it should be.

P&G has nearly a 175-year history as an innovator, McDonald reminded the business and civic leaders in attendance: Tide, the first heavy duty laundry detergent introduced in 1946; Crest, the first fluoride toothpaste to be endorsed by the American Dental Association in 1955; Pampers, the first mass marketed disposable diaper in 1961; and Swiffer, the first sweeper to use a disposable cloth in 1998, among others.

The nearly $80 billion company also pioneered the use of color in print ads; was one of first U.S. companies to create dedicated research and market research departments; gave birth to soap operas on radio and TV; and invented brand management, he said.

The point, McDonald said, is innovation comes from every part of business. He believes in purpose inspired innovation, saying P&G believes in touching and improving lives for generations to come.

Innovation must be defined broadly. He said innovation doesn’t mean just new inventions, but ideas that can be commercialized.

He outlined six things the region could do:

• Accelerate startup activity of research institutions;

• Strengthen collaborations with pillar companies;

• Actively coordinate support infrastructure;

• Recruit and retain more new talent;

• Create a public policy advocacy role in line with an industry cluster strategy; and

• Grow capital investment in local early stage companies.

“We have the opportunity now to the change the future of the city and region for the better to fulfill this purpose,” he said. “It’s time to invest in innovation. It’s time to make Greater Cincinnati a leader in the hearts and in the minds of the citizens and throughout the world when it comes to innovation.”

Contact this reporter at (513) 705-2551 or clevingston@coxohio.com.

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