How do you create a company that unleashes and capitalizes on innovation?
In a hypercompetitive global economy, creativity has never been more important for success . But how do you create a company that unleashes and capitalizes on innovation? For answers, writers at the HBS Alumni Bulletin turned to five HBS faculty experts in culture, customers, creativity, marketing, and the DNA of innovators. What they have to say might surprise you.
First, consider the question of intellectual property (IP). Divide your knowledge cleanly between those pieces you want to protect-the component on which you'll build the value-capturing part of your business-and the knowledge that you're going to put into the public domain. Let your users go to town on the open parts of the system, but be aware it's a delicate balance. The last thing you want to do is foster competition down the line, as IBM did when it let the IP of essential components slip out of its own hands and into the grasp of Microsoft and Intel.
This article was provided with permission from Harvard Business School Working Knowledge.