Innovation hubs are struggling. Here's what's next

"Innovation hubs were once the darlings of corporate strategy, promising to future-proof businesses and spark breakthrough ideas. But two decades in, the cracks are showing. Too many hubs have struggled to prove their worth, and some have quietly shut down altogether. In reality, these costly spaces never lived up to the hype-and the future lies elsewhere. Rather than investing in shiny new labs, organizations should be cultivating innovation communities: networks of people, inside and outside the company, who collaborate around shared challenges and opportunities."

"Innovation hubs have proliferated through private enterprise over the past two decades. This has largely happened because of broader cultural shifts, like the increasing pace of societal and technological change, and globalized competition, which made it imperative that organizations develop their own muscle to shape a leading edge. Companies proved this out through rather dependable profit cycles, which in turn created bandwidth for broader exploration."

"These hubs usually exist at varying scales in physical form, with a blend of core team and supporting organizers that lead events programming, project development, and stakeholder engagement. Some of these hubs choose to stay close to the core business, be it adjacent to production facilities or headquarters, like BMW's Project i-Ventures. Their proximity enables an effortless flow of people and ideas from the core business."

Innovation hubs proliferated over two decades as companies sought to respond to accelerating societal and technological change and globalized competition. Many hubs proved costly and have struggled to demonstrate value, with some closing. More than 60% of U.S. financial services firms and about 40% of automotive and retail organizations established hubs. Hubs take physical forms and combine core teams with supporting organizers to run events, develop projects, and engage stakeholders. Some hubs sit close to headquarters to enable easy idea flow (for example BMW's Project i-Ventures); others operate at the periphery for freer experimentation. Organizations should prioritize building innovation communities that network people inside and outside firms around shared challenges instead of investing primarily in standalone labs.

Read at Fast Company