Companies Misplace Innovation Bets by Overlooking Local Expertise
Corporate innovation funding often favors established networks and locations, neglecting young entrepreneurs with vital local knowledge. A shift is needed to recognize proximity as expertise, according to Fast Company.
Corporate investment in innovation frequently concentrates on familiar individuals and locations, overlooking potentially impactful solutions. Organizations like RIVET, which supports young entrepreneurs, highlight the necessity of broadening the recognition of innovation.
Venture capital and investments are often geographically concentrated in hubs like California, New York, and Massachusetts in the US. This practice leads to attention being given only to certain networks and credentials. While favoring easily identifiable innovators can be efficient, it risks overlooking genuine innovations from less recognized sources.
Local expertise, derived from direct experience with a problem, is frequently undervalued. Examples like Nigerian hydrologist Joshua Ichor, who developed water quality monitoring technology, and Ugandan Walter Okwir, who improved girls' school attendance with reusable sanitary pads, demonstrate this. Their deep understanding, rooted in lived experience, offers a unique advantage beyond mere technical skill or connections.
Companies should adjust their strategies by making smaller, earlier bets, expanding their search beyond traditional university and startup programs, and giving more weight to "proximity" as a form of expertise. This involves evaluating a potential innovator's deep understanding of the problem, assessing community trust, and seeking evidence of prior experimentation. Such a shift can better identify potential and bring overlooked solutions to global challenges to the forefront.