Marissa Mayer has some words of wisdom from the Googleplex about being innovative in a downturn. My favorite quote is:
But there clearly are things that can be replicated [about Google’s culture], like having small teams, awarding a lot of ownership to those teams so you stretch and grow those people. Or really focusing on and demanding that innovation come from everyone and everywhere throughout the organization. One of the worst things you can do in a company is to have an R&D segment or an innovation group. Once you have some people whose job it is to innovate, everyone else stops innovating.