Doing business on the dominant digital platforms makes it difficult for companies to differentiate their products and services and pursue competitive strategy. Platform-dependent businesses must understand the risks and how to navigate them.

In a search for Schumpeterian solutions, the Obama Administration has made venture capital a cornerstone of its Clean Technology policy, adopting a strategy of providing large loan guarantees to a few venture capital-financed firms. This article argues that three key conditions are necessary for venture capital to successfully open new economic spaces and then it applies them to assess the viability of venture capital investment in clean technology. The article concludes that large loan guarantees are unlikely to be effective. Other government policies such as SBIR grants, university R&D support, certain (de)regulatory actions, large-scale demonstration projects, and/or procurement decisions can better encourage both incremental and Schumpeterian innovation without distorting the turbulent dynamics of newmarket creation. This analysis can also be applied to other sector- and market-specific innovation policies.

New ideas are the precious currency of the new economy, but generating them doesn't have to be a mysterious process. The image of the lone genius inventing from scratch is a romantic fiction. Businesses that constantly innovate have systematized the production and testing of new ideas, and the system can be replicated by practically any organization. The best innovators use old ideas as the raw materials for new ideas, a strategy the authors call knowledge brokering. The system for sustaining innovation is the knowledge brokering cycle, and the authors discuss its four parts. The first is capturing good ideas from a wide variety of sources. The second is keeping those ideas alive by playing with them, discussing them, and using them. Imagining new uses for old ideas is the third part--some knowledge brokers encourage cross-pollination by creating physical layouts that allow, or even force, people to interact with one another. The fourth is turning promising concepts into real services, products, processes, or business models. Companies can use all or part of the cycle. Large companies in particular desperately need to move ideas from one place to another. Some will want to build full-fledged consulting groups dedicated to internal knowledge brokering. Others can hire people who have faced problems similar to the companies' current problems. The most important lesson is that business leaders must change how they think about innovation, and they must change how their company cultures reflect that thinking.

A set of firms exists whose output consists solely of innovative solutions to novel problems, and whose long-term success depends on their ability to continuously innovate. These firms act as knowledge brokers, spanning multiple industries to innovate by transferring knowledge from where it is known to where it is not. They are often consultants to clients in a range of markets, but are also groups within a large organization that serve a range of otherwise independent divisions. Rather than producing breakthroughs in any one technology or dominating any one industry, knowledge brokers rely on an alternative but equally powerful strategy that lends itself to continuous innovation. These firms create new products and processes by combining existing technologies in ways that result in dramatic synergy. This article presents a theory of innovation through knowledge brokering that explains the actions and advantages of such firms, and it considers the lessons these firms can offer to others seeking to innovate.