Entrepreneurship and Innovation Key to the Global Economic Recovery, According to...

Entrepreneurship and Innovation Key to the Global Economic Recovery, According
to Ernst & Young Report

White paper highlights the role of government in making economies
"innovation-friendly"

DETROIT, June 16 /PRNewswire/ -- Ernst & Young LLP today released a report
during the Detroit Economic Club's National Summit that highlights the vital
importance of entrepreneurship and innovation in today's economy. At a time
when business leaders are struggling to balance short-term survival with
long-term demand for growth, innovation and an entrepreneurial mindset is
essential.

The new white paper, Entrepreneurship and innovation: The keys to global
economic recovery, details the clear connection between entrepreneurship,
innovation and economic growth. Drawing on academic research, leading
business minds and real-world experience, the report shows how developing new
products and services, revamping organizational processes or adopting fresh
approaches to partnerships can enable companies to take advantage of the
current economic climate. The full report can be downloaded at
http://www.ey.com/innovation.

"Entrepreneurship and innovation inherently thrive in downturns; in fact, some
of the world's largest companies were born during a recession," said James S.
Turley, Global Chairman and CEO of Ernst & Young. "In times like these, it's
especially evident that entrepreneurial thinking isn't optional. It's more
than a buzz word -- it's a business strategy."

The white paper analyzes many aspects of the entrepreneurial debate,
including:

-- Recessions tend to favor the naturally innovative temperament of an
innovative mind. Historically, entrepreneurs have thrived in
recessions, and helped to bring about a return to economic health.
According to a recent Ernst & Young survey, 67% of entrepreneurs are
focused on pursuing new market opportunities brought on by the
downturn.
-- The market leaders of today are not necessarily the market leaders of
tomorrow. Globally, all the major indexes turn over every five years.

For example, the Global Forbes 2000 has experienced a 51% turnover;
the
HDAX (Germany), 50%; the FTSE 350 (UK), 50%; the KOSPI 200 (South
Korea), 49%; and the Bombay 200 (India), 91%. Entrepreneurial-minded
enterprises are growing with incredible speed and quickly entering the
ranks of the world's largest corporations.
-- Innovation is often disruptive, yet it is critical to maintaining and
sustaining market leadership. Strong organizations embrace this and
make it a part of their corporate culture.
-- Entrepreneurship is not about size; rather, it's a state of mind.
Large companies can and do build and sustain cultures that embrace the
power of innovation.

-- Government policies can play a big role in encouraging entrepreneurial
growth. Free flows of capital, labor and ideas benefit innovators, as
does an educated populace. Additionally, governments can create
conditions that attract foreign investors and encourage or discourage
innovation through the tax code.

"Those with an innovative mindset can unlock the hidden opportunities in this
recession," noted Mr. Turley. "New companies will spring up that will
revolutionize whole industries, while mature companies will build innovative
cultures that can strengthen their competitive edge for generations. After
all, innovative companies outperform their industry peers and are the most
attractive to shareholders. We must do everything we can to stimulate
creative thinking across our organizations, teams and processes. Our economic
recovery depends on it."

About Ernst & Young
Ernst & Young is a global leader in assurance, tax, transaction and advisory
services. Worldwide, our 135,000 people are united by our shared values and an
unwavering commitment to quality. We make a difference by helping our people,
our clients and our wider communities achieve their potential.

For more information, please visit www.ey.com.

Ernst & Young refers to the global organization of member firms of Ernst &
Young Global Limited, each of which is a separate legal entity. Ernst & Young
Global Limited, a UK company limited by guarantee, does not provide services
to clients.

This news release has been issued by Ernst & Young LLP, a member firm of Ernst
& Young Global Limited.

SOURCE Ernst & Young LLP

Katie Johnston of Ernst & Young LLP, +1-201-872-7194, katie.johnston@ey.com