Risky Business
Published in

Risky Business

Scott Lenet

Nov 21, 2018

7 min read

The Building Blocks of Corporate Innovation — Part 1 of 3

Four basic tactics for growth & change

Innovation risk is a function of operational and financial commitment
  • Operational control this asks whether the corporation is responsible for running the innovation effort (options include full responsibility, partial responsibility, or a passive approach)
  • Purchase of equity this asks whether the corporation is acquiring ownership in an entity that it did not previously own (options include majority ownership, minority ownership, or no new ownership)
Operationally-focused innovation approaches include R&D and business development
Licensing is a variation of business development in which a corporation can take a passive role or exercise partial control
Equity-focused innovation tools include M&A and corporate venture capital
Joint ventures can result from internal R&D efforts an often include characteristics of business development, venture capital, and M&A
The more time and money committed in innovation activities, the greater the risk

Liked what you read? Click 👏 to help others find this article.