Here is an idea that I would like to see implemented more often in large corporations. A lot of start-ups exist because entrepreneurs get access to funds through venture capitalists. This relationship between entrepreneurs and venture capitalists works like a market. So what if we applied these principals to innovation and entrepreneurship within a large corporation?
In other words, innovators and entrepreneurs would present their ideas and projects to an internal market, that would be ready to place bets on some of them. Within a large corporation, who has the money? Business Unit General Managers so these guys are the ones, who would act as “internal venture capitalists”. Rather than spending their R&D $ on projects coming from the labs, they would have access to a much broader scope of projects and ideas that they may be interested in pursuing further.
Remembering an article I came across some time ago that was showing that a large group of people is more likely to make more accurate future predictions than a panel of experts, we could even imagine that the project selection process is not the privilege of the GM’s and their direct staff any longer but is actually opened to all employees.
I’m wondering what kind of innovation and entrepreneurship would emerge within a large corporation if they implemented a model like this one…