As regular readers of this blog know, one of my pet peeves concerns the standard myths of innovation. Let me highlight a couple. Myth one is that innovation is all about technology. Myth two is that innovation proceeds in a linear fashion from scientific research to a fancy new product. The two are obviously interrelated. If it is only about technology, then model of the process is a linear deployment from lab to market (with occasional feedback loops.)
For a long time, I have argued that lead-edge companies understand that these are myths. That point jumped out at me when I was recently reading a book by the management consultant Tom Koulopoulos. The book, The Innovation Zone, is aimed at companies who want to become more innovative. But the points he makes are relevant for policymaker's understanding of innovation.
On the first myth, over and over he cites examples of how the most innovative companies go far, far beyond technology. He stress, with examples, that innovation is not invention and that business model innovations are just as important. Apple's iPod and Zipcar are classic cases in point.
He also points out the innovation is not a sole activity (myth three: the lone genius driving the process). Rather, collaboration is key to sustainable innovation in any organization.
On the second myth, he has this to say when discussing the failure of companies to be open to alternative sources of innovation:
And just as companies need a new organizational set-up, so too do we need a new innovation policy for the 21st Century. Our policy focus on R&D and IT is not enough. Business is starting to get it. Can policy makers?
For a long time, I have argued that lead-edge companies understand that these are myths. That point jumped out at me when I was recently reading a book by the management consultant Tom Koulopoulos. The book, The Innovation Zone, is aimed at companies who want to become more innovative. But the points he makes are relevant for policymaker's understanding of innovation.
On the first myth, over and over he cites examples of how the most innovative companies go far, far beyond technology. He stress, with examples, that innovation is not invention and that business model innovations are just as important. Apple's iPod and Zipcar are classic cases in point.
He also points out the innovation is not a sole activity (myth three: the lone genius driving the process). Rather, collaboration is key to sustainable innovation in any organization.
On the second myth, he has this to say when discussing the failure of companies to be open to alternative sources of innovation:
This points to the flaw in the innovation model used today in most organizations, which is build to generate ideas from one place, R&D. An idea that starts there will be taken seriously, evaluated through some methodical process, and then tested and, if it makes it through the right gates, ultimately commercialized. But ideas that start elsewhere have no path to follow. In fact, they typically have nothing but obstacles to content with. In this respect we are stuck in a 1920s-style division of labor that is woefully out-dated for today's demands.Amen to that.
Just as central R&D had to be developed and institutionalized over the past two hindered years, we now need a new function to cultivate ideas from throughout the organization.
And just as companies need a new organizational set-up, so too do we need a new innovation policy for the 21st Century. Our policy focus on R&D and IT is not enough. Business is starting to get it. Can policy makers?
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