In Business Week’s annual survey on innovation, it’s not a big surprise that many of even the most innovative companies have taken a hit. (With stock indexes hovering at about half their peak value, it would be amazing if they hadn’t.)

Also it’s no surprise that Apple and Google lead the list of still-innovating companies. It’s in their DNA.

The surprises are hidden in the deeper stories. Tata Motors, for example, has not only upended the car industry by producing the first
$2200 car, they are going to be selling those cars at electronic stores and department stores, plus Tata owned retailers. That’s a whole new business model after a century of dealerships.

One important element of their innovative approach is that they sponsor annual awards for the best innovations. Plus an award for entrepreneurial employees who tried something new that failed. What? Yes, awarding failure—something that a lot of companies give lip service to, but very few actually do.

A less hopeful surprise, however, is the result of a survey by Duke’s Pratt School of Engineering. They found that half of Americans believe that the innovations of this century will not come from this country. Most believe that China will take the lead.

If you’re an entrepreneurial company today, you have a chance to prove them wrong—but only if you keep innovation alive during these financial times.