398 ENTREPRENEURSHIP
things differently and develop new insights. They are being innovation instead of sim-
ply observing it from a comfortable distance. There are no negative roles that focus on
only the worst-case scenarios, as with a devil’s advocate. This intellectual approach is
part of IDEO’s intellectual property and is difficult for imitators to copy. It is a source
of SCA for IDEO. In Street Story 10.3, IDEO’s creativity-promoting personas are sum-
marized.
The second unique aspect of IDEO is its central position in the global network of
innovation and venturing. Because of its long experience in the field, its prominent client
list, and its stunning successes, IDEO has a unique historical place in the creativity uni-
verse. This is clearly rare, valuable, hard to copy, and non-substitutable.^40 In a strategy
that helps IDEO maximize the value (versus the protection) of its intellectual property,
IDEO’s Kelley has made a founding donation to Stanford University’s new Institute of
Design. Information about the current projects and methods of the d.school,as it is
known, can be found at http://www.stanford.edu/group/dschool.INTRAPRENEURIAL STRATEGIES
Almost all large corporations now recognize the need for intrapreneurship and corpo-
rate venturing. They risk losing current markets if they don’t exploit disruptive technolo-
gies. Still it is not an easy thing to do. If it were, all companies would do it successfully
and it would be an advantage to none. The strategies employed for corporate venturing
can make the difference. This section reveals how firms pursue technical innovation and
presents a framework that enables companies to increase their odds of succeeding, the
Blue Ocean strategies.Technological Innovation
Technical innovationcan be defined as the art of introducing a new device, method, or
material for application to commercial or practical objectives.^41 A successful technical
innovation gives a corporation new core competencies, new revenue streams, new entry
barriers, and improved profitability.^42
There exists a global network for technical innovation, a system that includes inde-
pendent inventors, private not-for-profit research tanks, universities, government agen-
cies, and both public and private firms. These actors engage in three activities:- Basic researchis the pursuit of scientific knowledge. Frequently, there is no partic-
ular commercial application in mind when the scientists begin basic research pro-
grams—for example, research on molecular biology and the genome. Governments,
universities, and non-profits are most likely to deal in basic research since there may
be no financial payoff for a long time, if ever. - Applied researchsets out to solve a problem or develop an application for the basic
research. It aims to provide something useful for someone. Most pharmaceutical
research into new compounds is applied research. Companies and inventors do this
type of research. - Development researchleads directly to commercialization. The development of
new drugs and the subsequent testing for safety and effectiveness is development
research.