Innovation is essentially change. A firm could change products and services, processes, business models, paradigms and positioning of their services and brands. My take is that firms need more innovation during downturns to stay competitive and to meet their performance targets. The form and nature of the innovation drives would most probably vary from one economic cycle to the next, but I think most firms would lean towards efficiency and productivity related innovation drives during economic down-turns.
Kheepe Moremi

It may depend on the nature of undertaking , nevertheless in almost all cases of a down turn the no 1 remedy is to synergize. This is a time to bring out the best of your self, innovations in sales and marketing visavis innovations in cost cutbacks are the keys to turn around a business headed for the 4 sale column. Turning around a failing business requires overwhelming innovation, it is that idea that saves the enterprise , and the reason it usually takes a new brain is because it brings new innovation. INNOVATION IS EMPOWERMENT IN BUSINESS.

An economic downturn is a macro-economic phenomenon. Rarely is success or failure in a small or medium sized business determined by such "big picture" issues. By contrast, while your business plan, vision and strategy should have some idea of where you're going; your business activities should be focused on valid tactical goals and achievements. Unless your gut tells you that an economic downturn will radically change the way your company is building its "forest," don't change the way you're dealing with the "trees and the bark." In short: don't get distracted by macro-economic trends that don't immediately impact your business - focus on developing the business as you would have before awareness/acknowledgement of the trend.

During times of recession, the market is usually awash with talent that can be hand at lower cost than before. It is during these times that smarter, well run companies will collect these great people and continue to expand their solutions. Also during these times companies have an opportunity to build an emotional brand with their target market since most companies are leaving them stranded with their problems unsolved.

In truth recession provides grand expansion opportunities for smart, well run companies. Take advantage.

Extend. Carefully monitor reserves, Encourage the people in touch with the intended market to make the "Baby steps" of creating a product your consumers will find irresistable.

It depends on the innovations. I believe true innovative activity is a fluid process that rolls with the economic punches. In the event of an economic downturn you don't curb your innovations you ensure that the innovations are steered in the right direction. I.E. making your company more sustainable, finding solutions that reduce cost on your end, introducing products or services to the general population that they need DURING an economic downturn. A perfect example, rising oil prices are making us look at alternatives to oil. Rising food prices tell us that bio fuel made from grains is probably not the right choice. The company, group, or individual that comes up with a viable alternative can help solve two global issues. Innovations is huge during economic downturns, it just depends on what you're direction.

Innovation is something to be defined as an positive approach towards the demand or say NEED.Respectively,with context to an economic downturn,it becomes more necessary to boost up the innovative activities within and outside the enterprise so as to cope up with the effects of the economic downfall on the economy and ownself as a whole.The process should be executed with utmost care keeping in mind that there should not be any negative effect of the process on the company itself..however..risk is an itegral part of the Business.

An innovative risk is always worth taking. Even if the creative risk does not bring in profit, lessons learned are invaluable and modifications are also possible. Also, innovation doesn't always have to be risky. The monetary and educational positives outweigh the possible monetary losses and innovation should take place no matter economic situation.

You need to fight like hell to save a critical mass of seed corn (innovation / R&D) no matter how hungry you are for those resources. Once it's gone a cold, dark future is a certainity. It's just a matter of how long it take for the lights to flicker out.

"Safe" could be defined a couple of different ways in that question.

"Safe" should encompass of course what's best for the long term. Innovation should be promoted as much as ever. There's a risk involved with each new endeavor, and the possible scenarios are innumerable and so can't be laid out for easy solutions in an online forum survey.

Focusing on some kind of services for the home owner may not be wise in this kind of environment, but neither should it be dismissed on its face. Maybe the new "thing" would actually fit a cautious homeowner's needs.

Et cetera and so on.