The paper examines how recessions affect R&D spending -- one such channel for growth during times of reduced profits, according to economist Joseph Schumpeter. If production suffers during recessions while R&D does not, then recessions should be an ideal time to seek out and develop new ideas and products. However, empirical evidence shows that R&D tends to fall during recessions, not rise.
Link
http://www.chicagofed.org/publications/fedletter/cflnovember2005_220.pdf