Check out: "Managing New-Product Development and Innovation in Challenging Times"

Takeaway: It's still time to innovate, even during bad economic times. In summary, Morelli and Biggelaar suggest:

1. Commit to greater customer centricity in new-product planning
2. Develop more effective program management capabilities that break down internal silos
3. Tap into a larger idea pool
4. Leverage a new generation of open service delivery platforms