The chapter illustrates how strategically pursuing growth through the
development of new products and services brings a wealth of rewards to
companies ± greater profit margins, increased earnings streams, higher stock
prices, etc. Unfortunately, a level of uncertainty accompanies innovation,
and the degree of risk is often such that CEOs talk to innovation but do not
actually adopt it as a critical component of their culture or make it a top
priority. Most CEOs deny their reluctance to tackle innovation because it is
high-risk and/or high-cost, but inevitably organizations fail to allocate
adequate resources ± human and financial ± to support innovation.