Insights
June 18, 2025

Building an innovation ecosystem for big companies: why they shouldn’t try to be startups

(Est. reading time: 5 mins)

When it comes to innovation, the startup world often gets all the attention. They’re quick, scrappy, and always ready to pivot at a moment’s notice. It’s easy to think that if big companies could somehow replicate that kind of agility, they’d be unstoppable. But here’s the truth: large companies are not startups, nor should they strive to be.

What works for a startup doesn’t always translate to a corporation. Big companies have their own set of advantages and specific resources, stability, and an established reputation that startups can only dream of. So, rather than trying to mimic the fast-paced, high-risk culture of a startup, big companies should focus on building a robust innovation ecosystem that plays to their strengths. Let’s dive into how they can do that, because big companies innovate too!

Start with purpose, not imitation

Startups are often driven by short-term goals to get to market faster, grab headlines and scale quickly at all costs. It’s all about finding what works and iterating rapidly. However, large companies have something that startups can’t match: the ability to think long-term. This strategic advantage can be a game-changer when it comes to building an innovation ecosystem that works.

Take Johnson & Johnson as an example. Rather than trying to operate like a nimble startup, J&J has focused its innovation efforts around a clear, long-term goal: improving healthcare for people around the world. Their Janssen Innovation program is a perfect example of how large organizations can push innovation without rushing to replicate startup chaos. Instead of trying to “act” like a startup, they focus on what they already do best - using their resources, experience, and partnerships to lead the way in healthcare innovation.

Big companies should start by setting a clear, long-term vision for innovation, which will give direction to all of their efforts and align resources accordingly. The key is not to copy the fast-and-loose startup mentality, but to create an environment where innovation is intentional, sustainable, and strategic.

Collaboration is everything

Startups can be quick to innovate because they tend to have small teams with clear lines of communication and super-fast decision-making. However, large companies have an edge: they can bring together diverse expertise from across departments, industries, and even different locations. The secret to building an innovation ecosystem in a large company is fostering collaboration, both internally and externally when needed.

Consider how Procter & Gamble approached innovation with its Connect + Develop program. Rather than relying solely on internal R&D, P&G expanded their reach, inviting external innovators from startups to universities to work together and solve real challenges. This broadens the talent pool and introduces fresh ideas, something that would be difficult for startups to achieve with their limited resources.

So, rather than trying to be a scrappy, isolated team, big companies should focus on how they can connect, both internally between departments and externally with startups, academic institutions, and other corporations. By bringing together the best ideas from different perspectives, companies can create a much richer and more effective innovation ecosystem.

Experiment, but with a purpose

Startups are all about experimenting with new ideas, sometimes without a clear sense of direction. They often use the phrase ‘fail fast’ and this can lead to breakthrough innovations and quick learnings, but it can also result in many dead ends. For large companies, the goal isn’t to throw ideas at the wall and see what sticks, but to build a culture of purposeful experimentation that is aligned with the core business strategy.

A good example of this is Spotify. While they were originally a startup, their approach to experimentation has remained a crucial part of their growth even as they scale. Instead of rushing new features to market without testing, they constantly gather user feedback and iterate on their features to ensure they’re really adding value. Their focus on continuous, data-driven experimentation allows them to stay ahead of the competition without burning through resources.

Big companies should embrace the idea of experimentation, but with a strategic framework. Instead of blindly mimicking the fast-paced, trial-and-error model of most startups, large companies can afford to approach experimentation with more foresight, backed by data, clear objectives, and a plan to scale successful ideas.

Tap into external networks

While startups often work with limited external resources, large companies have the power to tap into vast networks, including partners, suppliers, research labs, and even competitors. By creating a networked innovation ecosystem, big companies can access fresh ideas, cutting-edge technology, and new markets that wouldn’t be available to a small team.

Take Samsung, for example. Through their Samsung NEXT initiative, they collaborate with external startups to help develop innovative technologies for the future. By partnering with the best and brightest from the startup world, Samsung can push forward new solutions without having to build everything in-house. This allows them to scale quickly while keeping their innovation pipeline fresh.

For large companies, the lesson here is clear: don’t try to innovate alone. Leverage external networks and build strategic partnerships to foster an ecosystem of collaboration, not isolation. This will help companies keep pace with fast-moving trends and accelerate their innovation efforts.

Empower employees to think like entrepreneurs

Entrepreneurial mindsets drive startups. Every team member thinks like an owner and seeks new ways to solve problems. While large companies may not have the same sense of urgency as startups, they can still foster an entrepreneurial spirit within their teams. It’s about creating a mindset of ownership and accountability across all levels of the organization.

Microsoft’s Garage initiative is a great example. Instead of trying to mimic the unpredictable nature of a startup, Microsoft empowers its employees to pitch their ideas, experiment with new technologies, and take ownership of their projects, all within the company’s well-established structure. It’s a great way to allow employees to act like entrepreneurs without throwing the company’s stability out the window.

The key is creating an environment where employees feel empowered to innovate, take risks, and challenge the status quo, all while benefiting from the resources and support of a larger organization. This entrepreneurial spirit can help fuel the innovation ecosystem, making it stronger and more resilient.

Conclusion: Innovation ecosystems that work for large companies

Innovation doesn’t have to mean trying to replicate the startup model. Large companies don’t need to be startups or even scaleups; instead, they need to build ecosystems that capitalize on their unique strengths, such as resources, scalability, and deep infrastructure. By focusing on long-term goals, fostering collaboration, empowering experimentation, and tapping into external networks, big companies can create dynamic and sustainable innovation ecosystems.

At the heart of it all, large organizations should foster a culture where innovation is integrated into everything they do without pretending to be something they’re not. With the right approach, large companies can create innovation ecosystems that not only drive growth but also help them stay relevant and competitive for years to come.

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