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Facebook has also been known to host all-night hackathons to drive internal innovations for building the applications of tomorrow.
With deep pockets and unmatched R&D investments in AI, the top 5 players - Amazon, Apple, Google, IBM, Microsoft and Facebook - are moving really fast in productizing their internal innovations.
Therefore, since marketplace dynamics have led to an increased interest in the "open innovation" paradigm; enterprises are driven to accelerate their internal innovations with the help of external resources (Chesbrough 2007).
It's ripe for disruption because current large players carry so much overhead that the hurdle rates for internal innovations prohibit a lot of amazing products from getting to market.
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The issue with the lab or incubator concept is how you move the kind of innovative thinking from that internal innovation test bed into the organization at large.
Few scholars have however confronted the issues faced by small innovative firms capitalizing on their internal innovation and using outward IP licensing, even though these firms are major actors in the contemporary innovation landscape (Fosfuri 2006).
What about internal innovation? A. The first thing we did was open the internal innovation architecture.
Internal innovation networking is as critical as external partnering.
Even more interesting, large companies like GE are applying them to internal innovation initiatives.
Technological acquisitions have become a popular complement to internal innovation in order to overcome the time-compression diseconomies of internal innovation.
While Google has bought and successfully integrated companies including YouTube, Android and ad firm DoubleClick, its recent record of internal innovation has been less impressive.
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