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For more than twenty years, major innovations—the kind that transform industries and even societies—seem to have come almost exclusively from startups. Established companies still dominate most markets, but despite massive efforts and millions of dollars, they can’t seem to achieve the same kinds of foundational breakthroughs.

 

The problem, say Tony Davila and Marc Epstein, is that the very processes and structures responsible for established companies’ enduring success prevent them from developing breakthroughs. 


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