Innovation is famously difficult — many projects end up losing money, frustrating employees, and going nowhere. And yet corporations and governments spend billions of dollars annually pursuing innovation. This huge spending would generate more value for businesses and societies if the innovation success rate were just a little higher. Is there a way to increase the success rate without spending more?
The Right Way to Spend Your Innovation Budget
Spend your money on the hard stuff, not quick wins.
August 03, 2018
Summary.
Innovation projects often fail because the resources are spent on the wrong kind of innovation. Too much money is spent on attention-grabbing activities that are straightforward to do, like hiring new people, procuring new technologies, and buying more facilities—what can be called “innovation capacity.” It is much less obvious, and usually harder, to change the design of a current service system, introduce new customer experiences, or build a better business model—what can be called “innovation ability.” It’s the latter that offers the best bang for the buck, so direct your resources there.
New!
HBR Learning
Innovation and Creativity Course
Accelerate your career with Harvard ManageMentor®. HBR Learning’s online leadership training helps you hone your skills with courses like Innovation and Creativity. Earn badges to share on LinkedIn and your resume. Access more than 40 courses trusted by Fortune 500 companies.
Unlock your team's curiosity and willingness to take smart risks.
Learn More & See All Courses
New!
HBR Learning
Innovation and Creativity Course
Accelerate your career with Harvard ManageMentor®. HBR Learning’s online leadership training helps you hone your skills with courses like Innovation and Creativity. Earn badges to share on LinkedIn and your resume. Access more than 40 courses trusted by Fortune 500 companies.
Unlock your team's curiosity and willingness to take smart risks.