The culture of innovation in Silicon Valley advocates for rapid action and breaking with the old to make way for the new, yet such practices are hard to sustain in the long run. Hackathons and open innovation challenges may generate ideas with great potential, but often perform poorly in achieving a broader impact. This is because the support network for startups is typically limited when it comes to interpersonal connections.
Many incubators and accelerators provide systematic online support for new companies in the initial stages of concept development and team formation, but assistance for mid- to long-term development is far from sufficient. If intermediary organizations filled this gap, they would seize a great opportunity and offer a potential solution to reduce the failure rate of new companies.
Despite continuous efforts to encourage cross-sector collaboration and open innovation, cultivating disruptive innovations and bringing them successfully to market remains an arduous task for businesses. Many believe there is still a shortage in the production of ideas, and we need to attract more individuals from diverse backgrounds into the conversation. Even though fresh and creative thinking is always welcome, people often overlook a key fact—successful innovation is not just the result of sudden inspiration.
Studies of hackathons and other methods of accelerating innovation show that after the initial phase of brainstorming, real ideas are rarely put into practice. Organizers of these events usually focus on the clash of ideas and intelligence, lacking a long-term plan. Participants should be coming from a point of enduring commitment, but most people are either not clear on their future commitments or are too optimistic.
In fact, innovation is not just a burst of creativity, but a long journey that requires collaboration. As Daniel Epstein, CEO of Unreasonable Group, has pointed out, the success of companies in the 21st century depends more on their capacity to collaborate. This viewpoint is supported by much research on social networks, psychology, creativity, and the entrepreneurial process, which finds that innovation is more likely to succeed when intermediaries are involved in promoting innovation and maintaining collaboration between teams.
This article synthesizes the results of previous research and our own findings, highlighting the important role of intermediary organizations in the innovation process. We have described how intermediary organizations support collaboration throughout the innovation cycle—not only by providing opportunities for innovators to meet new contacts but also by helping them develop these opportunities into relationships and maintaining/updating these connections as collaboration progresses.
For example, Unreasonable Impact (UI) is a project established by Barclays and Unreasonable Group. It demonstrates how intermediary organizations can inspire mutual trust among people and facilitate beneficial connections by taking on different roles—such as mentors, academic advisors, clients, and more.
UI has specifically designed a web platform for entrepreneurs, along with a rich array of resources required for advancing business development. It provides robust support for them by addressing the various challenges faced by rapidly growing businesses. UI holds three training programs annually, gathering a group of entrepreneurs who are in the growth phase. These programs usually last from five to seven days, involving essential topics for business development such as understanding changes in regulatory laws and expanding production capacities.
In these programs, entrepreneurs not only have opportunities for education but also engage in in-depth exchanges, receive feedback, and share their concerns. So far, participants in the UI program have successfully established over 300 companies in 53 countries worldwide, generating a total revenue of over 7 billion US dollars, and providing more than 25,000 full-time jobs.
To gain a deeper understanding of UI’s operation process, and to study it as a case of intersectoral collaboration solving complex societal problems, we conducted a series of interviews and workshops involving 28 collaborators. The research found that UI’s success in establishing collaborative relationships is primarily due to two key factors:
- Rigorous selection: Unlike most open innovation studies focused on how to build frameworks to trigger challenges and expand participation, UI has taken a different path. The UI team carefully selects the businesses and individuals participating in their projects and events to ensure that they meet the criteria not only in terms of financial status, social impact of the enterprise, and community diversity but also in terms of aligning with the mission, values, and beliefs of the UI community. The selection process is rigorous and comprehensive, seeking not just simple success, but individuals who can cooperate harmoniously and contribute positively to the community.
- Creating psychological safety: The concept of “team psychological safety” proposed by Professor Amy Edmondson of Harvard Business School is excellently embodied here. UI is committed to creating an atmosphere where entrepreneurs can freely share their successes and failures. The team recognizes that establishing equality between mentors and mentees is essential, and to promote this equal relationship, traditional terms like “mentor” are avoided. Instead, the guidance relationship is defined as a partnership, and program participants are called “fellows.”
UI also meticulously plans the experience of each event. From workshops, team-building activities to community dinners, the aim is to create unusual “magic moments.” For example, at dinner, attendees, called fellows, are assigned to different tables, each equipped with a theme to guide the conversation. Participants deeply share their stories without interruption, often sharing their emotional experiences, with tears frequently becoming part of the evening. Additionally, the event includes breaks for yoga and quiet walks, underscoring the importance of providing reflection space for attendees. This helps them understand each other’s experiences and build deep connections through resonance.
Meticulously planned reflection sessions not only promote the exchange of ideas but also establish strong relationships between participants. For instance, two researchers, one focusing on recyclable 3D printing materials and the other on residential wind turbines, discovered their common connections and interests during a luncheon in a UI project. In the months following the project’s conclusion, they kept in touch, sharing research progress and advice, and forged a deep friendship on their respective entrepreneurial journeys. At their first meeting a year later, they reconnected at another UI event and showcased their product prototypes together. This encounter made them realize they could collaborate more closely to improve each other’s products and possibly develop a new device. They jointly applied for funding in hopes of transforming this idea into a more structured collaborative project.
The second step of relationship development involves defining common goals, measurement criteria, key indicators, and planning the required processes and frameworks after conceptualizing ideas and forming partnerships, to actualize these ideas while ensuring the smooth operation of everyday business. Mapping out a roadmap for the partnership is a challenging task that may benefit from an external perspective. An example is the collaboration between the founder of a “last-mile” delivery company and a biotech solutions developer. Their teams collaborated to deliver healthcare products to remote communities during the pandemic. The founder stated: “You need to invest time and energy to understand your partner, manage expectations properly, and clarify your ultimate goal of collaboration, a process that requires sincere, joint effort.” Another UI researcher added: “Indeed, external support is needed in a partnership. Third-party strategic consultants can offer valuable advice that aids in designing and driving the work of the next phase.”
All researchers we communicated with emphasized the challenges they faced in transitioning from shared ideas and initial enthusiasm for cooperation to establishing the fundamental framework for the collaboration, including role definitions, leadership development, project management needs, and team interactions, while also refining the concepts of their products or services, and advancing the work together. The UI program provided them with necessary resources, opportunities to connect with other researchers and mentors, and regular meetings that also strengthened their sense of accountability to each other. Succesfully moving from the conceptual phase to the implementation stage often depends on organized follow-up actions and continued support.
The organizers of hackathons or open innovation challenges typically focus on the speed of sparking innovative thinking and overlook the importance of long-term support. However, an increasing number of intermediary agencies are recognizing the necessity of continued support for innovators and entrepreneurs after the events. For example, “WirVsVirus” (#WeAgainstVirus) is a German open innovation project initiated by seven civil society organizations to collectively address the challenges posed by the COVID-19 pandemic. The project started with an online hackathon, attracting 28,000 participants with 1,500 innovative ideas. Professors from the Hertie School in Berlin and Johannes Kepler University in Austria highlighted in their research report that the unique aspect of the “WirVsVirus” project was that from the onset, a six-month follow-up support program was in place to help the participating teams prototype and test the ideas developed during the 48-hour hackathon.
In the further planning, participants will have the opportunity to establish connections with experts, investors, and potential partners in their field, akin to the exchanges and services provided by intermediary organizations. Teams regularly hold conference calls to share individual insights and challenges they face, enjoying comprehensive guidance.
Many intermediary organizations prefer to help innovators refine and optimize their ideas, rather than instruct them on how to collaborate. These agencies believe that strong innovative ideas are key to a team’s success, hence they invest more resources into innovative concepts. However, research on cross-disciplinary teams has shown that effective collaboration requires good team dynamics management. Intermediary organizations can play their biggest role by acting as coaches and creating a safe environment.
For example, Impact Hub London—an international network of entrepreneurial centers with over 100 hubs, bringing together 320,000 entrepreneurs (known as Impact Makers)—seeks mentors who not only assist with the improvement of business and technical skills, as stated on their website, but also “provide comprehensive support and motivation”. At Impact Hub London, mentors offer guidance for 3 to 9 months, helping teams to collaborate by providing comfort, assisting collaborators to find a common language, establishing expectations, and agreeing on the division of roles.
Research shows that all these factors are critical for successful cross-departmental collaboration. We tracked two corporate collaboration cases to demonstrate the importance of ongoing support for collaborative innovation. In the first case, two researchers from the University of California’s international college collaborated during the pandemic to provide health care packs for rural communities in Asia. Due to time constraints, they felt they did not have enough time and resources to establish job roles or define responsibilities, which ultimately affected the effectiveness of the collaboration.
In the second case, two researchers embarked on a project to develop a solar-powered electric vehicle but quickly realized the task was beyond their individual capacity to manage independently. They decided to form a joint venture to provide more structured management, accountability, and resources to the team. The two founders believed that founding the company was essential for their growth and scaling. While the collaboration in the first case eventually fell apart, the second company continued to grow and expand.
Based on the environment of mutual trust built within the UI community, researchers can take flexible actions when needed and minimize bureaucratic and administrative constraints. However, as the scale of collaboration grows, the need for organization becomes more complex. To face these challenges, building solid relationships becomes crucial. Although the researchers in the first case realized this need, they were unable to effectively address it due to lack of time and resources. In such situations, intermediary organizations have the opportunity to intervene and guide collaborators through difficulties.
Therefore, intermediary agencies can play two major roles in assisting collaborators: providing reflective “checkpoints” to help collaborators self-examine and adjust at various stages.
Intermediary agencies play an important role in facilitating cooperation between social entrepreneurs and venture capital teams. They can help team members achieve harmony in role transitions and relationship changes, and even trigger new collaborations by hosting workshops, conference calls, or face-to-face reflection meetings. Such interactions also contribute to the redefinition of common goals and the introduction of effective new management frameworks.
In these interactive junctures, social entrepreneurs can step back from their work, think and reflect objectively, and apply the experiences to practice. This is also an important step in cultivating an ecosystem. The goal of intermediary agencies is not only to promote cooperation among individuals but also to build a network community of social entrepreneurs so that innovators can connect with more personnel, investors, and innovators to expand their business horizons.
For example, former participants of the UI project still keep in touch and proactively connect with new students. They sometimes even take on the role of mentors to help newcomers grow. Potential investors can also seize this opportunity to engage with researchers, not only providing financial support for their projects but also assisting them in getting necessary funding. This is the story of 80 Acres Farms, a vertical farming enterprise located in Ohio that uses renewable energy entirely. By participating in the UI project, 80 Acres’ founders were able to establish a relationship with the Barclays Bank team, which led to a series of investments from Barclays Sustainable Impact Capital for their commercial-scale production facility.
It is worth noting that despite the popular Silicon Valley ethos of “move fast and break things,” such practices are often not sustainable. Hackathons and open innovation challenges can generate potentially valuable ideas, but without adequate support for team dynamics, these ideas are unlikely to have a lasting impact. This exposes a gap in that structured network support is very limited at the medium to long-term enterprise development stage.
For intermediary agencies, this is not only a great opportunity but also an effective way to reduce the high failure rate of startups.
In current business management practices, encouraging employees to take active leave has been proven to promote rapid growth of the company. The right management concept believes that those who raise questions should not become the creators of problems. It is evident that allowing employees to enjoy their rest time without worries is essential to maintaining the vitality and creativity of the team.
To further optimize work-life balance for employees, leaders and managers should adopt more humanized management strategies. This not only benefits the satisfaction and efficiency of employees but also can ignite their passion and loyalty towards work. A positive atmosphere should be advocated in the company culture, supporting employees to express doubts and opinions during work and collaborate on problem-solving, rather than keeping silent due to worries.
In short, creating a work environment where employees can feel respected and valued is key to the sustainable development of every company. In such an environment, employees can set aside their workloads when necessary, rest fully, and return to their positions more invigorated, bringing higher efficiency and quality results to the company.
