WHY INNOVATION MATTERS

Innovation drives growth, both growth of categories and growth within businesses. For Procter & Gamble, innovation is the engine of growth, providing consumers benefits they value and differentiating P&G brands from those of competitors. The principles that have driven P&G's innovation-and the company's resurgent growth over the last two years-transcend industries. In an increasingly challenging economy, where market growth can no longer be relied on to provide sustained growth, P&G has refocused its efforts' on large, breakthrough innovations that will deliver consumer benefits and long-term growth through multiple product generations.