Danny Meyer views innovation as accessing a "file cabinet" of stored experiences—tastes and memories—and combining them in a fresh way. Like a musician using the same eight notes to create a new song, entrepreneurs can create novel offerings by merging existing, proven concepts.

Rather than relying on formal knowledge sharing, Alphabet's X embeds central teams (like legal, finance, prototyping) that float between projects. These individuals become natural vectors, carrying insights, best practices, and innovative ideas from one project to another, fostering organic knowledge transfer.

Nestle avoids a rigid top-down approach by fostering a "hive mind" mentality. While a global strategy exists, local markets like Brazil and Mexico have autonomy to adapt to their unique cultures. The key is constant cross-market communication, where teams share successes and failures to ensure everyone evolves together.

Instead of fearing failure, Ridge institutionalizes it by allocating a $1M annual budget specifically for testing new product expansions. This removes pressure from any single launch, encourages aggressive experimentation, and has led to eight-figure successes alongside predictable flops like watches.

When an experiment succeeds (e.g., positive framing after a loss), don't just iterate. Exploit the core psychological insight by applying it across adjacent product areas, turning one team's discovery into a company-wide growth strategy.

Dara Khosrowshahi describes a two-step innovation process. First, let teams compete to rapidly "hack" a solution and find product-market fit. Second, once a winner emerges, the organization must systematize and automate that solution through engineering to make it scalable and part of the core platform.

Forcing innovations to "scale" via top-down mandates often fails by robbing local teams of ownership. A better approach is to let good ideas "spread." If a solution is truly valuable, other teams will naturally adopt it. This pull-based model ensures change sticks and evolves.

Stripe's Experimental Projects Team discovered that embedding its members directly within existing product and infrastructure teams leads to higher success rates. These "embedded projects" are more likely to reach escape velocity and be successfully adopted by the business, contrasting with the common model of an isolated R&D or innovation lab.

Spreading excellence should not be like applying a thin coat of peanut butter across the whole organization. Instead, create a deep "pocket" of excellence in one team or region, perfecting it there first. That expert group then leads the charge to replicate their success in the next pocket, creating a cascading and more robust rollout.