Venture activities in the large corporation

Discussed is how a large corporation responds to different levels of product innovation between the time they occur and their introduction into the marketplace. A centralized research laboratory of a diversified corporation has a specific role as an interface between the scientific world, which requires a high level of scientific endeavor, and the business world, which requires innovations to justify expenditures. From the product development point of view, there are weaknesses inherent in operating divisions of a corporation on a decentralized basis and indicated are some of the methods used to overcome the obstacles to transferring technology that result from this organizational structure. The methods used at the various levels of product innovation include 1) “selling” incremental improvements, 2) “applied research” funding, 3) corporate funding of existing divisions, 4) establishment of new divisions, and 5) establishing a corporate entrepreneurial task force to operate across divisions. There are also comments on the effect of an entrepreneur in a key management role and on the effect of competition, presumed or actual.