A clearly articulated innovation strategy is at the heart of every successful innovation system.
Innovation strategy defines how the organization's innovation efforts will support its overall business strategy.
It sets the broader innovation agenda, spotlighting the critical investment areas that will drive growth and value creation. Which broad domains should be targeted? What is the right investment mix between longer-term breakthrough ideas and smaller, more immediate “bread and butter” projects? Which sources of innovation—for example, internal development, partnerships, M&A, or crowdsourcing—should be pursued? What intellectual property is underleveraged—and how best to shore up areas of IP weakness? And critically, innovation strategy provides parameters for the design, structure, and governance of the research and product development process.