Stories and Strategies of Radical Innovation Breakthrough Mark Stefik and Barbara Stefik Breakthrough Breakthrough Stories and Strategies of Radical Innovation Mark Stefik and Barbara Stefik The MIT Press Cambridge, Massachusetts London, England © 2004 Massachusetts Institute of Technology All rights reserved. No part of this book may be reproduced in any form by any electronic or mechanical means (including photocopying, recording, or informa- tion storage and retrieval) without permission in writing from the publisher. MITPress books may be purchased at special quantity discounts for business or sales promotional use. For information, please email [email protected] .edu or write to Special Sales Department, The MITPress, 5 Cambridge Center, Cambridge, MA 02142. Set in Sabon by SNP Best-set Typesetter Ltd., Hong Kong. Printed and bound in the United States of America. Library of Congress Cataloging-in-Publication Data Stefik, Mark. Breakthrough : stories and strategies of radical innovation / Mark Stefik and Barbara Stefik. p. cm. Includes bibliographical references and index. ISBN 0-262-19514-3 (alk. paper) 1. Technological innovations. 2. Inventions. I. Stefik, Barbara. II. Title. T173.8.S745 2004 608—dc22 2004042642 10 9 8 7 6 5 4 3 2 1 Dedicated to the many brilliant and creative people who have worked at the Palo Alto Research Center, for living a culture of innovation that inspired this book. With gratitude to George Pake, the founder of PARC, who passed away on March 4, 2004. Pake knew how to set direction with incentives and also how to encourage creativity by staying “out of the way.” He set an example for research leaders everywhere. Contents Preface ix Acknowledgments xi I Invention and Innovation 1 The Breakthrough Dilemmas 3 2 The Dance of the Two Questions 27 3 Invention: Seeing Differently 47 4 Innovation: The Long Road 69 II Fostering Invention 5 Mentoring and Apprenticeship 85 6 The Prepared Mind and the Aha! Moment 115 7 The Beginner’s Mind and Play 129 8 Walking in the Dark 149 III Fostering Innovation 9 Innovative Research Groups 161 10 Obstacles to Radical Innovation 181 11 Cultures of Innovation 207 12 Innovation at the Crossroads 231 Afterword 255 Notes 261 Bibliography 285 Index 291 Preface Innovation is subtle, complex, and full of surprises. It depends on orga- nizational culture and practice as much as on individual brilliance. This book is for people who are interested in innovation and especially in breakthroughs. It explains how leading companies succeed repeatedly in inventing the future. Open innovation refers to strategies that companies use to acquire technologies from other companies and to market their own technol- ogies. Open innovation makes good economic sense. However, it is only half of the story. Nobody ever created a breakthrough with open inno- vation. Open invention refers to strategies for creating inventions and breakthroughs. The challenges of the new century require strategies for both open innovation and open invention. Without a culture of innova- tion that honors the pursuit of breakthroughs, the tendency is to opti- mize the routine, to pursue incremental improvements, and to resist the truly innovative. This book is a road map to the ways of invention and innovation. It introduces the terminology and the practices of leading inventors, entre- preneurs, and managers in innovative organizations. Among its goals are to illuminate how innovation works and how breakthroughs are created. The chapters in part I introduce two questions that must be answered for every successful innovation: What is possible? What is needed? The chapters in part II focus on invention and on the experiences of creative researchers and inventors at work. Without invention, there can be no innovation. These chapters address the following questions: Do all inventors work the same way? Do researchers work alone, or in teams? What makes breakthrough inventions different from incremental product improvements? What does an “Aha!” feel like? How do repeat