Innovation does not happen by chance, innovation governance is needed

ONE approach to encourage more innovation in business and beyond is to effectively govern it. While most business leaders would appreciate the importance of good corporate governance, for many, the term "innovation governance" falls into the category of "words with difficult-to-remember meanings".

In contrast to the word "innovation" which refers to the implementation of a new or significantly improved product, service or process that creates real value, the term "governance" is a bit more complex due to its connotations of authority, control and influence. The word itself derives from the Greek word kubernáo with the connotation of steering a ship (metaphorically, it refers to the challenges of steering men).

Broadly speaking, governance is about the nature of authority relationships in a country or an organisation as well as the degree of formality of associated rules, norms, and actionable procedures - which can vary widely. While knowledge governance is concerned with the institutional framework that enables the creation, absorption and dissemination of new knowledge, corporate innovation governance can be defined as a systematic approach to "align goals, allocate resources and assign decision-making authority for innovation, across the company and with external parties".