1) No lack of people/ideas when more people are looking for work. Bigger labor/IP supply available to you at lower cost. Most of your assets are people: http://tinyurl.com/lps6bz....so hire the great resources others are laying off. Believe I posted previously on study by McKinsey showing that winning companies spend more than competition on innovation during recessions.
2) Less capital....fewer get funded (e.g. McDonalds, Apple, Crispy Creme came through this)so stakes are higher. The ones that get funded tend to be really breakthrough. In Cincinnati currently per on source close to A round funding, the ratio of funding is 1/4 what it used to be a few months ago. Higher probability that buying IPO stock during recession will pay off for you?
see video clip from BNET @: http://blogs.bnet.com/intercom/?p=2785&tag=nl.e713