Not so, according to the results. Respondents indicated that R&D budgets actually increased 5.7 percent in 2008 and 70% planned to maintain or increase their spend in 2009. Surprising? Not really given the survey also revealed more than 90% of the participating executives said innovation was critical to their companies’ success. More than 90%! With 14 pages of summary, testimonials, pie charts and graphs, this report gives a clear picture of just how integral innovation is to the corporate strategies behind the world’s most important industries.

The report uses an arms-race analogy to describe how the 1,000 largest corporate R&D spenders consider innovation so important, they don’t want to disarm despite the short-term economics. Innovation is the foundation they are betting on to hold their market positions and gain a competitive edge. In their minds, everything can be cut…but not R&D.

For me personally, the release of the Booz&Company results couldn’t have been better timed – today happens to be the fourth annual Innovation Day. But with the added reinforcement of the survey conclusions, a big question came to mind. How does an “arms merchant” like Cadence take advantage of the innovation arms race? The answer is simple. We INNOVATE!

The survey reached 1,000 of the largest corporate spenders on R&D. These companies are the leaders in their respective industries – all well-known for innovation. They are also EDA customers. So when I say the answer for Cadence is to innovate…I’m talking about creating technology that is not just tightly aligned with but intrinsic to the innovation our customers bet their companies on.

EDA customers use the innovation we create to change the world – literally, their products change the world for consumers and businesses. If we enable them to bring products to market faster, more cost effectively and with better quality, our innovation becomes invaluable to their success. We become the competitive weapon they won’t go to battle without.

Innovation is the heart and soul of Cadence – it’s in our DNA and it’s what makes us different. We’ve made powerful advances possible and now have over 800 U.S. patents – that’s more than any other EDA company.  We’re very proud of our history and the Cadence employees who’ve spent many dedicated hours making their complex ideas a reality for our customers.

Being that today is Innovation Day, it’s an important annual milestone for Cadence. In honor of the occasion, we’re taking this opportunity to recognize some of the company’s amazing technology leaders and highlight their contributions to the EDA industry this year. We have a big day planned and since we go big or go home – the celebration will come with all the bells and whistles worthy of their achievements.

No matter what your plans are today to ring in Innovation day, on a larger scale, there’s no doubt innovation continues to thrive in Silicon Valley thanks to the great minds and dedication of our technology leaders/entrepreneurs. I look forward to being a part of future developments and strongly believe if we continue to focus on solving hard problems, we can foster a positive influence throughout the world.

-JB

After 100s of meetings, I have 1000s of thoughts relating to my new favorite obsession — EDA. Market dynamics, ecosystem, competitive landscape, conventional wisdom, business models, growth segments, product direction, pricing and packaging — the list of challenges goes on and on.

But the one observation – beyond all the others – that completely blows my mind is the intense cynicism from friends surrounding my decision to join Cadence. On pretty much a daily basis, I‘m asked, “Why John, would a marketing guy like you make a move to EDA?” Translation: “What the hell were you thinking?”

I’m just two weeks in and unquestionably confident that my decision was right. How can I be so sure? Well, I can clearly pinpoint the exact thought process behind the decision and it all started when I read one simple article.

I’ve learned from experience that it’s easy to know when it’s time to leave a job, but it’s really hard to know where to go. Thankfully, my fellow critical thinkers, this industry has many pundits who have outlined “the rules” that are meant to help us find the light as we make our way up the path of advancement. “The rules” give us generally accepted principles or tribal wisdom by which most people should judge a new opportunity.

As luck would have it, I happened across an article published on Fortune.com that was skillfully written by a seer of great industry insight and highlighted the 10 things to look for in a “LEGENDARY” job. I recognized them right away – this article covered “the rules” in all of their well-acknowledged, well-heeded glory.

Things to look for in a “legendary” job like…

Number 1: a company in a growing market with a strong brand and leading position.

And number 2: a company with products that customers view as aspirin (read: essential), not vitamins (a supplement). In bad economies no one takes their vitamins.

And number 3: a strong balance sheet with lots of cash.

And number 4: a legendary executive team.

And numbers 5, 6, 7, 8-10. All more of the same!

Ten things no one would argue with, right? Pretty obvious stuff for a successful enterprise. I read each recommendation closely and then to be sure, I read them again. Only I came to a different conclusion. Companies that already have these ten things going for them don’t need much marketing help.

I mean, who needs great marketing if the company already is the market leader, in a growing market, with the leading brand and the leading market position, with products that are absolutely essential, all supported with an awesome balance sheet?

Maybe I look at the world a bit differently than most people, but I aspire to be a great marketer and to meet a great challenge. To actually accomplish something extraordinary, I knew I was going to have to break “the rules”.

So why EDA? Here it is – short answer. EDA is an industry that needs to reacquaint itself with “legendary” marketing.

Let me tell you why I think so. EDA is a critically important industry. It matters, but somewhere along the way it has forgotten that it matters. The super complex, increasingly powerful, application-rich chips that are required in every device that is produced today CANNOT be developed without EDA tools.

However, this industry is in desperate need of leadership and vision. There’s a transformational business and technology shift changing the way that companies develop silicon. We’re at one of those inflexion points that comes once a generation. I strongly believe the company that enables and accelerates this transition will become the undisputed leader on all fronts: innovation, technology, thought and market.

EDA used to be exclusively about design. I’ll even pay homage to Intel’s symbolic team of engineering rock stars portrayed in its recent ad campaign.  In the past, Intel-esque rock stars designed the chips we know and love. It was their goal to constantly make chips smaller, faster, with higher quality and reliability. Basically, these rock stars have continuously innovated all of the IP on a chip – every last piece of it. It isn’t like a friendly game of Guitar Hero either. The rock stars in this game have to spend a massive amount of time acquiring the resources and skills necessary to even start thinking about playing. You can’t fake it – there’s no air guitar.

Nowadays, it’s a fact — every industry is up against ever-increasing time, cost, quality and global competition constraints. I see some forces aggressively beating our industry’s “rock star model” into submission: the physics challenging the continuation of Moore’s law, the increasing importance of software that is embedded and the applications that run on chips. It takes too long, costs too much and worse, the quality is never where it needs to be. There is a tremendous amount of risk involved. It is impossible for one company to afford to keep all of the rock stars under one roof.

These forces have led the chip design process to a point of discontinuity. Integration is becoming just as important as design — integration of analog and digital IP, tighter and earlier integration of every stage of the design process, integration of heterogeneous, multiple cores on a single chip, integration of hardware and software. These and other integration challenges will forever change the semiconductor companies and their value chains.

EDA must rise to meet its customers’ changing requirements. Our customers need help in the transition to a business model that can meet the cost structure, meet the time constraints, and deliver quality in a more complex world. The rock star model must evolve. Rock stars will still create amazing IP, but “system integrators” will be equally important in the value creation equation.

These system integrators will work with internal and external IP rock stars, and even their end systems customers, using distributed systems. Hardware and software teams will be managed using executable specifications and metrics that bring more predictability to schedules, just as the complex system integrators do in the embedded software world that I come from.

That’s right, I spent the last five years in embedded software going through a very similar industry transformation. I know from experience what a shift to an integration model looks like. Similar to embedded software, a community of experts in the EDA industry is forming and actively gaining momentum. They can’t be stopped and they won’t be ignored. They’re driven by fundamental economic forces. This EDA community is quickly developing a system integration model that can be broadly used and reused by the entire industry. But what comes next?

The way I see it, no one has answered the call of the community. No one has stepped up, raised their hand and focused on making sure our customers have the tools and techniques they need to face the coming challenges of the industry.

Well look closely, because my hand is up!

A great company is going to seize this opportunity. At the end of the day, this company will have achieved legendary results and be able to boast all of “the ten things to look for” mentioned in the Fortune article. This company will be THE “legendary” EDA company. This vision is why I joined Cadence.

-John

*Originally posted on EDA Graffiti.