Those are key to innovation
Roelofsen ’18 [Julia Roelofson, Director, Business Development NineSigma, “Thinking Like Startups for More Breakthrough Innovation,” 4—4—18, https://www.linkedin.com/pulse/thinking-like-startups-more-breakthrough-innovation-julia-roelofsen/, accessed 5-3-24]
The main reasoning behind this “startup-mania” is that large companies are extremely good at developing incremental innovations, but not breakthrough innovations. There are many opinions, why it is so, like for example:
* Culture: Corporate culture usually motivates people to follow existing procedures, rather than being innovative.
* Risk management: Large companies are naturally risk-averse, as the stakes in the game are too big. They want to create a safe and stable environment for their employees, who would not come to work for a corporation if they would look for a risky venture.
* Portfolio management approach: It takes time to create a good portfolio of products and recognized brands and naturally companies avoid innovation that can destroy the markets of their own existing products.
* Availability of the resources: Corporations have financial, human and technological resource needed for innovation activity, whereas startups have no choice, but seek an access to the resource.