The long game of innovation and value creation

Abstract

Purpose The purpose of the paper is to emphasize the performance benefits of a long-term innovation and value creation perspective. This paper responds to the recent concept of the imagination premium method for valuing companies. It offers four key takeaways to create a long-term innovation-focused orientation for future value creation. Design/methodology/approach The research is based on both consulting experience and insight from several studies of executives that were supported by the U.S. Conference Board. Findings The research differentiates how high versus low innovators create long-term perspectives and value. High innovators have explicit processes that support innovation, leadership that focuses on long-term performance, resources committed to long-term projects and innovation and knowledge management systems that transfer knowledge throughout the organization. Research limitations/implications The research offers strategic directives aimed at creating long-term value but acknowledges that there are other means to accomplish such objectives. Practical implications This paper offers strategies for executives to create an innovation-focused organizational culture that drives lasting long-term value. Social implications Focusing on long-term innovation prioritizes larger social, environmental and business objectives over superficial short-term stock price changes, leading to greater value-creation. Originality/value This paper advocates that leadership play the long game and adopt a longer-term view of innovation due to its long-term competitive, employee engagement, sustainability and performance benefits.