Google (GOOG), the world's largest search engine, plans to continue with even more innovation, use of mobile phones, applications and opportunity in cloud computing and open source, its CEO told FOX Business on Tuesday.

CEO Eric Schmidt told FBN’s Liz Claman in an exclusive interview that Google is continuing to spend its time on what it has always done -- innovation. He said the company welcomes competition, including Microsoft’s (MSFT) new search engine, Bing.

“From Bing's perspective, they have a bunch of new ideas and there are some things that are missing,” Schmidt said. “We think search is really about comprehensiveness, freshness, the scale and size of what we do, and it is difficult for them to copy that.”

Schmidt does not expect to see a comeback for the market just yet, but he thinks the consensus is correct that this summer could be the bottom of the business cycle, at least in the U.S.

"We have been affected by advertising, but not as much as other companies, although we are not immune,” he said.

Due to the economic downfall, Schmidt wonders if the government has the systems in place so these problems won't occur again, and how much additional credit will be needed to get through the crisis.

“On regulation -- it’s pretty clear the financial industry will be more regulated,” he said. “I am concerned that we are now in the process of forgetting private jobs are created by private capital, by private industry, and that is the engine of essentially wealth creation in America.”

Google Apps announced today integration with Microsoft. Schmidt thinks it is important to bridge the new kind of customer, the young customer, with the existing customer who has grown up with Microsoft.

"Our customers are using Google inside the enterprise and particularly, they are using Google Apps,” he said. “We have a big enterprise business, and part of that is to make sure the outlook information they have can be put into the Google Apps Cloud computing product that we offer.”