"Above all, we know that an entrepreneurial strategy has more chance of success the more it starts with the users -- their utilities, their values, their realities ... the test of an innovation is always what it does for the user...it is by no means hunch or gamble. But it is also not precisely science. Rather, it is judgment." -- Peter Drucker, Innovation and Entrepreneurship
Just because a company is spending money on research (such as markets, customers, or new technologies) and development doesn't mean they will get innovation. Innovation, as with advertising, training, or many other organization investments, depends on the quality of the investment as much as the quantity of resources put in it. A high proportion of innovative new products, services, and companies flop. That's often because managers build better mousetraps without first making sure there are any mice out there. Or that people still want to catch them.
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