HR has a role to play in nurturing business innovation to survive and thrive in the downturn through leadership, according to experts at the University of Cambridge

Jaideep Prabhu, Jawaharal Nehru professor of Indian Business and Enterprise at Judge Business School at the University of Cambridge, told delegates at the CIPD Annual Conference and Exhibition in Manchester: "Employers need to empower their staff. Reward people for their innovations - but don't punish for failure."

He explained businesses could no longer have "top-down championing" where innovative ideas filter down from senior staff, but through appropriate leadership initiatives all staff could be incentivised to come up with profit-making ideas.
 
Prabhu drew upon the example of Google, which allows staff 20%-30% of their time ‘innovating'.
 
He added: "Tough times require great leadership and HR must be the leaders of innovation in organisations. There is a structural issue, though - leaders need to be thinking up new ideas but have been too busy fire fighting during the recession."