The Hidden Opportunity in Every Crisis | Prof. Elisa Operti on Regional Innovation

Professor Elisa Operti, Professor of Strategy at ESSEC Business School, France, shares key insights from her groundbreaking research, "Recessions, Institutions, and Regional Exploration." In her research, Professor Elisa Operti tackles a fundamental puzzle in innovation literature, why do some of the most groundbreaking technologies, from radar to jet propulsion, emerge during or right after economic downturns? Rather than asking whether innovation rises or falls during recessions, her study reframes the question to explore what kind of innovation regions pursue when economic pressures mount. Drawing on patent data across U.S. metropolitan areas over a 14-year window surrounding the 2008 financial crisis, she finds that recessions can act as powerful catalysts for regional technological exploration, prompting regions to venture into entirely new technology domains beyond their established expertise. Strikingly, her research reveals that well-managed international banks, often blamed for triggering the 2008 crisis, played a surprisingly positive role in funding high-risk, exploratory projects that universities and public institutions were unwilling to support. Her core message for managers and policymakers alike is both timely and compelling: "Do not waste a crisis by only protecting the past." This podcast is brought to you by Global Management Consultancy. Disclaimer: 1. The background music incorporated in this video is the intellectual property of its respective developer and is protected under applicable copyright laws. Notwithstanding that it is a free-to-use version, Business Talk, Global Management Consultancy, and Deepak Bhatt do not own, and expressly do not claim, any rights, title, or interest in or to this music. 2. Dr. Elisa Operti shared key insights from her research, “Recessions, Institutions, and Regional Exploration”, in an engaging episode of the Business Talk podcast. The uploaded video contains copyrighted content, so changing any graphics, music, or on-screen appearance of the author or host is not allowed.