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HBR: Dysfunctional idea marketplaces stall innovation

Barriers in these internal systems keep strong concepts from reaching decision-makers, slowing progress despite abundant creativity.

byKerem Gülen
October 1, 2025
in Research

An article published in the September 29, 2025, issue of Harvard Business Review details research arguing that dysfunctional internal systems, termed “idea marketplaces,” are a primary cause of stalled corporate innovation, rather than a scarcity of new concepts.

The research suggests that despite pressures from rising R&D costs, longer development timelines, and increased market uncertainty, many organizations currently possess the innovative ideas they require. The central problem identified involves barriers that prevent promising concepts from reaching senior decision-makers. This insight is derived from an eight-year study that involved over 150 internal innovators, specifically employees who had initiated new products or ventures, and about 100 strategy leaders across multiple industries. The study concluded that systemic inefficiencies, not simply inattentive leadership, are the reason promising ideas often go unnoticed.

To better understand these organizational barriers, the researchers initiated a new study. This phase of research included interviews with 25 chief innovation officers from large multinational corporations such as Microsoft, LEGO, Coca-Cola, and Cisco. The project also gathered perspectives from influential organizations like the World Health Organization and the Red Cross. To gain a broader view on innovation systems and corporate decision-making, the team also surveyed 35 leaders from corporate venture capital programs. This new study revealed that companies must improve their internal platforms for idea sharing, evaluation, and selection to effectively unlock innovation potential.

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These internal frameworks are what the article defines as “idea marketplaces.” The research posits that without better-designed systems to discover, evaluate, and champion these internal ideas, innovation efforts will remain slow and costly. Improving these marketplaces can help organizations more efficiently capitalize on their internal knowledge and creativity, ultimately driving innovation more effectively.


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