A pharmaceutical company struggling with R&D stagnation applied Smith’s "Option Value" metric. They discontinued four legacy projects that looked good on ROI but had zero option value, reallocating $40M to adjacent possibility research. Two of those adjacent bets became blockbuster drugs seven years later.
, breaks it down into a manageable, strategic process. Whether you are a business student or a manager, understanding these core principles is essential for staying competitive. 1. What Exactly is Innovation? david smith exploring innovationpdf
Smith argues most innovation fails because no one defines what "failure" looks like upfront. Before starting any project, write down three specific conditions that would cause you to abandon the project (e.g., "Customer acquisition cost exceeds $50" or "Prototype fails 3 consecutive tests"). Post this on a wall. , breaks it down into a manageable, strategic process
: A key addition in later editions, this concept explores how organizations actually profit from their inventions rather than just creating them. Sustainability & Global Trends What Exactly is Innovation