How to successfully manage corporate innovation initiatives? Best practices and critical success factors for implementing innovation labs in large organizations

Abstract

Corporate innovation initiatives are increasingly pivotal for sustaining competitive advantage in today’s dynamic market environment. This study investigates best practices and critical success factors for implementing innovation labs in large organizations. Drawing on qualitative data from six in-depth, semi-structured interviews with senior executives across diverse sectors - including chemical industry (Bondalti), financial industry (Banco de Portugal and SIBS), healthcare (Hospital da Luz), public sector (Imprensa Nacional Casa da Moeda - INCM), and retail (Sonae MC) - this work project explores how innovation labs are managed and integrated with the overall corporate strategy. The findings indicate that strategic alignment with organizational goals, robust leadership engagement, and effective cross functional collaboration are essential. Rapid prototyping and short-cycle experimentation facilitate risk mitigation and accelerate the validation of innovative ideas, while performance measurement ensure continuous improvement and accountability. Furthermore, resource allocation, both in terms of financial investment and infrastructural support, is critical for creating environments conducive to innovation. Despite limitations related to sample size and the inherent subjectivity of qualitative research, the study provides relevant insights for managing corporate innovation initiatives. These insights offer actionable recommendations for practitioners and contribute to the broader academic discourse on corporate innovation management.