Amidst all the bad financial news, you may have overlooked a column in yesterday’s Wall Street Journal by Innovation Guru Clayton Christensen.  According to him, these times are actually good for innovators.

Why would that be, since R & D budgets are usually the first ones axed in a downturn? The answer lies in a number and inside the human psyche.  First the number: 93% of all business innovations that are successful originally start off in the wrong direction. So when times are flush, people stick with their initial vision and keep throwing money at it through market failure. When budgets are lean, you’re more apt to say “oops” and try something different. Or as the inventor’s maxim goes, “fail early, fail often.”

The second reason is really inertia.  When the economy is plugging along, there’s no reason to try something different and take that kind of risk.  When you’re pinching pennies, that upstart company’s cheaper alternative might be worth a try.

There’s an interesting story about how we came to have two major soft drink companies when Coca-Cola once cornered the market.  During the Depression, little PepsiCo offered twice as much soda for a nickel. As a side note, they started advertising in an unexpected place: the push bar of screen doors on little corner groceries. As a result, all the little kids who learned to read during the mid-thirties became lifelong fans of the brand that was there at eye level—and offered enough soda to share.

So if you’re an innovator, take heart.  This year is exactly when you’ll have your best shot at success.

Also, check out the New York Times 8th Annual Year in Ideas.