Many companies are hunkering down in today's economy and cutting back on R&D and expansion opportunities.  Rather than cutting back, I believe that the stronger companies should continue their level of R&D spend and continue to look for strategic acquisitions.  The weaker companies are certainly cutting back on R&D, and this will lead to additional opportunities for the companies which continue to invest in their future.  Without R&D, there can be no innovation; and, without innovation, future growth opportunities are limited.  A simplistic racing analogy: if the entire pack is slowing down (companies reducing R&D spend), there is an opportunity for the racers who speed up to take the lead.

I believe the same analogy applies to strategic investments via acquisition.  The stronger companies can use the downturn in the economy to add to their portfolio by acquiring their weaker competitors.  With bond yields at an all-time low, it's a great time for the stronger companies to issue debt for acquisitions and/or to increase their cash holdings.