This is a great time to invest in innovation:

- The next big thing always comes out of downturns.

- It is easier to find great people.

- Salaries are lower.

- Office space and other resources are more plentiful and less expensive.

- Capital startup costs are lower.

- IT costs are lower thanks to cloud computing and web services.

- Programming languages and development tools of various kinds are simpler and more powerful.

- Marketing costs are lower (if done right).

- Work can be virtualized across time zones and regions.

- Most importantly: As bad as this recession will get, the upturn that follows will be even larger.

The next upturn will be led by what I call New Rules Enterprises, these are organizations that are highly efficient and have made the most of the economies of Internet 2.0. More on this in future posts.