The Economics of Innovation and Big Bets

The Economics of Innovation and Big Bets "How do you make these big bets and when? When everyone can see that the economics makes sense, it's usually too late." There was a story in The Wall Street Journal about utilities that made a big bet into renewables 15-20 years ago and are starting to see their valuations increase to match that of the traditional oil giants. How do you value and build a business case for R&D and innovation? I have worked with the most senior leaders in oil and gas, 15-20 years ago, when they were making the decision if they should invest in renewables. Some decided to invest in renewables and some didn't. At that time, nobody knew what was going to happen. You have to make a bet on a technology that's unproven, but you're betting that it will improve to the point where you start generating profit. So, how do you make these big bets and when? When everyone can see that the economics makes sense, it's usually too late. [bctt tweet="How do you make these big bets and when? When everyone can see that the economics makes sense, it's usually too late." username=""] Can you fund the transition away…