The McKinsey Quarterly

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Using rivalry to spur innovation

Productive rivalry stimulated artistic innovation during the Renaissance, and according to the director of General Electric’s Global Research Group, it also has helped his company develop better products and services.

Many companies overlook the ability of productive rivalry to stimulate innovation. That could be a loss: Not only has it been a powerful contributor to innovation in the past, but according to Mark Little, the director of General Electric’s Global Research Group, rivalry also has made a difference in his company’s efforts to develop better aircraft engines, composite materials, and power generation equipment. Taken together, the two articles that follow suggest that innovation-minded executives whose R&D groups don’t employ rivalry should be looking for more opportunities to form teams, appreciate differences in their respective approaches, and conduct market tests. Embedding rivalry in a culture where what’s celebrated most is the outcome—a better product or service—can be a powerful positive force.

The art of innovation
Companies looking for new sources of creative energy might want to look backward—to the productive rivalry that catalyzed much of the artistic innovation during the Italian Renaissance.


Putting it into practice: Competition and collaboration in GE’s Global Research Group
Mark Little, the head of General Electric’s Global Research Group, describes how his company uses rivalry to stimulate innovation without disrupting a culture of collaboration.

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