Source | Bcg.com | BY: Michael Ringel
This article is an excerpt from The Most Innovative Companies 2016: Getting Past “Not Invented Here,” (BCG report, January 2017).
“No matter who you are, most of the smartest people work for someone else,” Sun Microsystems cofounder Bill Joy observed more than a quarter century ago. Since so much of innovation today is rooted in technology, especially digital technology, Joy’s Law presents companies with a double-barreled conundrum. How (and where) do they look for the best ideas, and how (and where) do they turn those ideas into business realities with significant revenue streams? Here we examine the second question, specifically the rise of new models and vehicles for developing external innovation and the need to manage both internal and external sources. (For a consideration of the first question, see the companion article “Casting a Wide Innovation Net.”)