Skip to content

Innovation By Acquisition

Phil McKinney
Phil McKinney
— 1 min read
innovation through acquisition

Innovation by Acquisition

Getting your innovation mix correct includes having innovation from M&A’s as part of the innovation strategy.  As with anything, there are pros and cons so go into innovation M&A with your eyes open. There are two types of innovations from M&A:

  • Acquiring a company
  • Purchasing IP (intellectual property such as patents, trade secrets, etc)

In some cases, M&A can allow an organization to become lazy when it comes to innovation.  M&A can lower the risk since the other organization has proven the opportunity, it also has a lower return.  Innovation from mergers and acquisitions needs to be part of the mix rather then the primary way an organizations fills its innovation pipeline.

Innovation Strategy

When M&A is part of the innovation strategy, it can be a great tool to secure a key position in the existing industry (e.g. acquire a competitor with unique IP) or grow into an adjacency (e.g. acquire new skills and expertise needed).

Past ShowsStudio Sessionsacquiringacqusitioninnovation strategyM&A
Phil McKinney

Phil McKinney Twitter

Phil McKinney is an innovator, podcaster, author, and speaker. He is the retired CTO of HP. Phil's book, Beyond The Obvious, shares his expertise and lessons learned on innovation and creativity.

Related Posts

The Customers Who Walked Away

Forty-two killer questions that survived years of testing, and the three places to aim them.

AI generated image of a customer walking out of a consumer electronics store

How One Word Steers Your Answer

The anatomy of a bad question, and what makes one great.

How One Word Steers Your Answer

What Half of 13 Reveals About Your Thinking

The power of questions comes down to how your brain works: it answers a question the moment you hear it, whether or not you want it to.

What is half of thirteen? and what does it say about your thinking skills and your curiosity