ABSTRACT
Ultimately, achieving the state of fourth derivative innovation is less about drawing hard lines around internal versus external innovation and more about creating processes that have inherent permeability with both the market and outside ideas. But as we discussed at the outset of this chapter, this is all about intense collaboration. To call it purely market-driven is a mistake that allows a market to hold you hostage to a single stream of innovation. If Sony cofounder Akio Morita had allowed customers to design the first Walkman or Steve Jobs had allowed the market to dictate the way they bought music, neither the Walkman nor iTunes would have come into existence.
