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Continuous innovation is one of the hardest tricks in business. Sustaining it over decades has proved impossible for all but a select few, such as 3M or W.L. Gore & Associates, the makers of Gore-Tex. One can’t just throw money and bodies at innovation—there is no correlation between the size of a company’s R&D budget and its innovation rate. Most ideas are bad ones, so you have to entertain a lot of them to find the real gems. According to academic research, a company, on average, needs 3,000 ideas to get 300 of them formalized, 125 of them into small experimentation, 10 of them officially budgeted, 1.7 launched—and one that makes money.