How to create positive innovation culture

To understand innovation culture, one must first examine the concept of organizational or corporate culture.

Organizational or corporate culture is unique to each organization and encompasses its values, attitudes, and norms, shaping the decisions and behaviors of its members. Many of its elements are invisible and subconscious. It evolves over time, making targeted change only possible through systematic effort and persistence.

Innovation Culture as the Foundation for Innovation Success

Innovation culture, therefore, is a corporate culture that fosters innovation. In practice, this means a positive attitude among employees toward innovation, where:

• Everyone contributes,

• Employees generate ideas, and

• Everyone collectively drives and supports innovation.

Thus, innovation culture should be the highest priority in innovation management, as it forms the foundation of all successful innovation activities.

 

Without a strong innovation culture, innovation efforts receive minimal and dispassionate support, leading to failure. Innovation in organizations faces two fundamental challenges:

1. First, innovation always presents challenges because it involves risks and changes, which can, even unintentionally, create resistance.

2. Second, innovation competes with daily business operations. It requires resources that cannot be allocated to immediate revenue generation.

These facts demonstrate that the success of an innovation depends on employee behavior. A strong innovation culture combined with a positive learning culture can overcome these challenges by enhancing the ability and willingness to embrace change. This paves the way for successful innovation.

Elements of an Innovation Culture

"If you want to build a ship, don't drum up people to collect wood, assign tasks, and give orders. Instead, teach them to yearn for the vast and endless sea."
Antoine de Saint-Exupéry

No quote captures the essence of innovation culture better. Innovation cannot be commanded; it must be lived. This requires values and frameworks that enable and encourage it.

• A strong emphasis on innovation and creativity

• Openness to new ideas

• Diversity

• Trust in employees

• Freedom and personal responsibility for employees

• Risk-taking and optimism

• Tolerance for mistakes (positive learning culture)

• Incentives for innovation

• Access to information and unrestricted communication

• Innovation-friendly structures such as flat hierarchies, quick decision-making, and clear rules

• Collaboration, team focus, and networking

• Resources dedicated to innovation

It is not enough to define these values and frameworks on paper. They must be ingrained in every employee’s mindset and actively practiced. A well-established innovation and learning culture creates the foundation for sustainable innovation success.

Shaping an Innovation Culture

There are many ways to shape an innovation culture. A holistic approach is necessary, with all measures working in harmony to achieve the desired culture.

Shared Alignment

The foundation lies in the what:

• What behavior is desired and relevant for the company’s success?

• Everyone must clearly understand the goal, the path, and expectations. This is established through an innovation vision and strategy.

• The goals, rules, values, and expectations must be clearly and motivationally defined.

• Strong commitment and accountability from top to bottom.

• All activities must align with the strategy and contribute to its realization.

Understanding & Competence

All employees need to understand and be competent in innovation. A strong learning culture supports this through targeted training, information initiatives, and regular knowledge-sharing sessions.

Leading by Example

Leadership and leadership style play a crucial role. Leaders must embody the values and implement necessary measures. Innovation values should be reflected in leadership practices, such as ensuring adequate resources are available for innovation.

Action

Action is everyone’s responsibility. The above-mentioned values and frameworks must be encouraged and reinforced by employees and, most importantly, by leadership. This includes targeted initiatives like incentive programs, innovation communication, or engagement in projects.

Intrapreneurship – Employees as Co-Entrepreneurs

Employees should act as if they were entrepreneurs themselves. This is a key prerequisite for innovation, known as intrapreneurship:

Employees proactively and passionately contribute their entrepreneurial talent, knowledge, creativity, and ideas, driving innovation forward—regardless of their department or position—as if they were independent entrepreneurs.

Promoting intrapreneurship means encouraging employees to generate and pursue great ideas. This requires not only dedicated employees but also an innovation and learning culture that enables them to develop and fully utilize their potential.

Innovation Culture Eats Strategy

"Culture eats strategy for breakfast."
Peter F. Drucker

If culture does not align with strategy, any effort in that direction is futile. For example, if a company aims to become a leader in innovation but does not allocate resources for radical innovations or allow risks and failures, it will never achieve its goals.

The strategy must fit the culture—or the culture must be actively changed to support the strategy. A well-established innovation culture, combined with a strong learning culture, can facilitate this transformation.

Innovation Is a Mindset

"Starting today, we are innovative." This command does not work because innovation cannot be dictated or prescribed. Innovation is an attitude—a mindset within the workforce—that takes years to develop. A strong learning culture supports this process by fostering openness, experimentation, and continuous learning.

Conclusion: Fostering a Positive Innovation Culture

Fostering an innovation culture within your organization is essential for innovation productivity and success. A strong innovation and learning culture go hand in hand: while innovation culture creates the space for creativity and change, learning culture ensures the continuous development of employees’ skills and mindsets.

For a company to achieve sustainable success, it must cultivate a strong innovation culture. Learn how to implement this effectively here.