What is the 70-20-10 Rule of Innovation and How to Use It
The 70-20-10 rule of innovation resource allocation, while not a hard and fast rule, has become popular among some of the biggest corporate giants. The principle involves investing 70% of resources in the core business, 20% in new developments, and 10% in new ideas. However, companies should tailor the ratios according to their own profile and needs. The benefits of using this model include systemic innovation, building innovation habits, and managing innovation as a portfolio. Challenges to the 70-20-10 model include finding the right ratios and managing risks pragmatically.
