Of the many risks that directors should be aware of, innovation is the most complex. A corporation that invests in innovation risks failure. A corporation that doesn't invest in innovation risks annihilation due to the many threats from small startups and mega-corporations alike, in a variety of areas.
Innovation is the core activity of human evolution to change the environment, reach high performance, and make collective progress.
While large organizations innovate, smaller ones often reinvent because they have different drivers for change.