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The Most Innovative Companies Have Long-Term Leadership

Harvard Business Review

Call 2014 the year of innovation. Google Trends reveals that interest in disruptive innovation crept up to peak levels this year. It seems that every time you hop on a quarterly earnings call, the CEO mentions innovation. If innovation is the foundation to building the future, this focus should be reassuring.

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Many CEOs Aren’t Breakthrough Innovators (and That’s OK)

Harvard Business Review

Innovation is widely regarded as important to long-term business performance. So, to achieve higher performance, should company boards and investors choose CEOs with the expertise that would better qualify them to lead innovation? For the rest, we found that other factors besides innovation drove strong shareholder returns.

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A Few Unicorns Are No Substitute for a Competitive, Innovative Economy

Harvard Business Review

For instance, Snapchat’s recent IPO filing revealed that the company grew revenues by 600% (to $404 million) in 2016. Entrepreneurship aids economic vitality by getting rid of complacent incumbents, accelerating innovation, and creating jobs. Jeff Bezos, the company’s CEO, understands that innovation is a numbers game.

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A Quiet Revolution in Clean-Energy Finance

Harvard Business Review

A star example is Google, which raised a mere $40 million in private funding before its IPO at a $23 billion valuation. While there has not been a defining exit in clean energy akin to the "Netscape moment" for the internet, there have been numerous recent IPOs in the biofuels sector.

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What Apple Should Do with Its Massive Piles of Money

Harvard Business Review

As I pointed out in my earlier post , the only funds that Apple ever raised on the public stock market was $97 million (about $274 million in today’s dollars) at its IPO in 1980. I agree and ask you to consider what public shareholders and stock buybacks have to do with innovation at Apple. Social innovation. Employee education.

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Venture Capitalists Get Paid Well to Lose Money

Harvard Business Review

Booming public equities and a recovered IPO market generated record portfolio company exits and distributions from VC funds. LPs expect to be paid well to assume the high fees (2% annual fees on committed capital) and long illiquidity ( minimum 10 years) of investing in private equities. What is the optimum level of VC commit?

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GM and Ford Highlight Facebook's Challenges, Opportunities

Harvard Business Review

Shortly before Facebook's turbulent IPO, GM announced that it was pulling its $10 million advertising budget from Facebook. Even though GM remains committed to Facebook through earned, owned, and shared programs, it appears to carry a traditional philosophy and approach to its everyday community strategy. Controversy erupted.