Large companies often have limited ability to innovate, but small companies can help while also reducing the often inherent risk, explains Neil Poxon of Oxford Flow

‘Co-creation’. It’s a trendy-sounding name for an easy-to-understand concept. Big companies buying in the talent of smaller companies to help them develop new, innovative solutions to their most pressing challenges.

But why, with all the capital and resources they have at their disposal, would a larger company require the services of a smaller operation? The reason is that a company’s ability to innovate is often inverse to its size.

The causes of this are myriad. Inevitably, as companies grow, a certain homogeneity sets in. The like-minded cluster together and an almost unavoidable narrowing of focus takes place. In addition, of course, larger companies will generally be more engaged in the day-to-day delivery of services. Developing and testing new ways to make things work better can often take a back seat when you need to maintain the status quo in order to keep customers and shareholders happy.

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(Available in: https://www.theengineer.co.uk/why-big-and-small-businesses-should-be-workingtogether-for-innovation-success/. Access in: 10/08/2017.)