According to popular notion, innovation is something that men wearing white coats in laboratories do. And that's the way it used to be. Companies set up vertically integrated R&D organisations and governments fussed over innovation policies to help them succeed. This approach had successes and many companies still spend pots of money on corporate research. But firms are growing increasingly disenchanted because the process is slow and insular. A global study across industries by Booz Allen Hamilton, a consultancy, even concluded that “higher R&D spending doesn't ensure better performance in terms of growth, profitability or shareholder returns.”
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