Executive summary

This chapter focuses on developing innovation in medium- sized businesses and is aimed at the chief executive and their executives or senior managers.

It is an enduring myth that invention drives successful innovation. This myth is particularly prevalent among small and medium-sized businesses and in scientific and government policy circles. In reality, only very occasionally does invention lead to outstanding success. It is a very risky path for a business.

Innovating enterprises are built, usually very purposefully. Size is both a constraint and a strength. Success is built on the quality of a businesss leadership and its management, and the ability to engage and focus the creative and commercial energies of people. These things are particular challenges for medium-sized businesses that also wrestle with investing in the organisational infrastructure necessary for larger businesses.

Building an innovating enterprise is neither a small step nor a part-time job for a busy chief executive. Success comes from understanding and anticipating the organisational changes that must be built into the business as it grows.

We set out some practical (though demanding) approaches for a medium-sized enterprise to make this change. We provide a checklist and a sequence of actions that are based on our practical experience of working with a range of businesses in Australia.

Some conventional mindsets are barriers to building the innovating enterprise. Although it is understandable that corporations and overworked chief executives of medium-sized businesses have these mindsets , they are dangerous impediments to progress and must be addressed.