The Innovation Paradox

For more than twenty years, major innovations—the kind that transform industries and even societies—seem to have come almost exclusively from startups. Established companies still dominate most markets, but despite massive efforts and millions of dollars, they can’t seem to achieve the same kinds of foundational breakthroughs.

The problem, say Tony Davila and Marc Epstein, is that the very processes and structures responsible for established companies’ enduring success prevent them from developing breakthroughs. This is the innovation paradox.

Most established companies succeed through incremental innovation—taking a product they’re known for and adding a feature here, cutting a cost there. It’s a solid recipe for growth, but major breakthroughs are hard to achieve when everything about the way your organization is… Keep Reading