/
© 2026 RiffOn. All rights reserved.
  1. HBR On Leadership
  2. How the Best Leaders Develop and Spend “Innovation Capital”
How the Best Leaders Develop and Spend “Innovation Capital”

How the Best Leaders Develop and Spend “Innovation Capital”

HBR On Leadership · Dec 24, 2025

Great ideas aren't enough. Build "innovation capital"—the credibility and influence needed to turn unproven concepts into reality.

The Best Idea Rarely Wins; The Idea Backed by the Most Innovation Capital Does

Idealists often believe the best idea will naturally triumph. In reality, an idea's success is determined by the "innovation capital" of its champion—their credibility, network, and influence. The idea and the innovator's capital are a combined package, not separate entities.

How the Best Leaders Develop and Spend “Innovation Capital” thumbnail

How the Best Leaders Develop and Spend “Innovation Capital”

HBR On Leadership·2 months ago

Even Salesforce's CEO Consciously Builds 'Innovation Capital' to Drive Change

Innovation capital is the credibility needed to win support for unproven ideas. Even top leaders like Salesforce's CEO Mark Benioff consciously build this capital, demonstrating that authority alone is insufficient to drive major innovation initiatives.

How the Best Leaders Develop and Spend “Innovation Capital” thumbnail

How the Best Leaders Develop and Spend “Innovation Capital”

HBR On Leadership·2 months ago

Effective Business Stories Require Conflict and Resolution, Not Just a Chronology

Many leaders mistake a chronological summary or a problem-solution statement for a story. True storytelling, like that used by Alibaba's Jack Ma, requires a narrative with characters, conflict, and resolution. This structure is what truly engages stakeholders and persuades them to join a cause.

How the Best Leaders Develop and Spend “Innovation Capital” thumbnail

How the Best Leaders Develop and Spend “Innovation Capital”

HBR On Leadership·2 months ago

Zipcar's Success Hinged on Framing Itself as an 'ATM for Cars,' Not 'Car Sharing'

The analogy used to describe a new idea dramatically affects its reception. Zipcar's founder struggled with the term "car sharing" due to its negative connotations. Reframing it as "wheels when you want them," like an ATM, was critical for winning support.

How the Best Leaders Develop and Spend “Innovation Capital” thumbnail

How the Best Leaders Develop and Spend “Innovation Capital”

HBR On Leadership·2 months ago

Microsoft's Satya Nadella Built His Career by Leading an Unpopular, High-Risk Division

Aspiring leaders can build significant innovation capital by leading unglamorous but potentially high-impact projects. Microsoft's Satya Nadella championed the unpopular server business, which became the cloud, illustrating how betting on a contrarian vision can propel a career.

How the Best Leaders Develop and Spend “Innovation Capital” thumbnail

How the Best Leaders Develop and Spend “Innovation Capital”

HBR On Leadership·2 months ago