Intel’s approach to managing innovation has a number of obvious
strengths. It is efficient, because it launches few blue-sky investigations
that might lead to dead ends. The approach is also efficient because it
reinvents fewer wheels, instead building on the research discoveries of
others (particularly university researchers) and transferring those discoveries
into the company’s own development process. Intel’s approach
to innovation saves money as well, because Intel leverages the facilities
and personnel of other institutions. Although the company often pays to
fund external research projects, these grants likely do not cover the full
cost of the researchers, facilities, and other overhead expenses.