Business Week is running an article titled How Google Fuels Its Idea Factory which is an interview with CEO Eric Schmidt in regards to how Google fosters new ideas. The best question and answer in the interview is the simplest one:
Can innovation really be managed, or is it a case where you have to keep the company and its managers out of the way?
I disagree with the word “managed.” You have to have a set of necessary conditions for innovation to occur. To start with, you have to listen to people.
We all don’t work in an environment where employees get to spend 20% of their time on projects they came up with to benefit the company. It’s a program than likely requires be instilled from top to bottom. That being said, the most important part is listening. Even without the 20% time for R&D related activity, people with passion find a way, so as a manager you should encourage and listen. The idea won’t always be great, you may not be able to get buy in to execute on it, but the point is to try.