Breakthrough Innovation Revisited

Breakthrough innovations represent technological or societal quantum leaps. They do not merely build on what already exists but break with familiar patterns of thought and action.

In innovation research, Joseph Schumpeter is regarded as the founder of the concept of creative destruction, the continual renewal process driven by radical innovations that displace old technologies and markets (see Schumpeter 1942). Such a positive reinterpretation of destructive power is especially prevalent today, as it so aptly describes technologically induced disruptions.

Breakthrough innovations are characterized by three features (cf. Christensen 1997):

1. Radicalness: They pave the way for entirely new technological paradigms.
2. Uncertainty: Their market potential is difficult to predict, which means their implementation involves considerable risk.
3. Systemic relevance: They can create entirely new opportunities in the form of new industries or even social systems.

Typical examples of breakthrough innovations often include the following:

The emergence of the Silicon Valley is a prime example of the interplay between a willingness to take risks, public funding, and radical research.

As early as the 1950s, Stanford professor Frederick Terman relied on close collaboration between the university and industry—a pioneering model for knowledge and technology transfer. The region benefited enormously from:

A turning point was the founding of Fairchild Semiconductor in 1957 by the “Traitorous Eight,” whose members later went on to establish Intel, AMD, and National Semiconductor. This sparked an innovation dynamic that shaped the technology of the entire 20th century and continues to resonate today.

According to the OECD (Science, Technology and Innovation Outlook, 2021), we stand at the dawn of a “tsunami of key technologies” – from synthetic biology to quantum computing. Innovation cycles are shortening while societal challenges grow ever greater.

Breakthrough innovations are long since no luxury but have become a necessity. Especially in areas such as climate change (e.g., direct air capture, alternative energy storage), functioning healthcare systems (e.g., mRNA technology), education (e.g., AI-driven learning systems with individualized learning paths), or artificial intelligence & robotics (e.g., for caregiving, industry, and the creative economy), breakthrough innovations can quickly make vital contributions.

There’s nothing inherently wrong with a cautious, well-considered approach to new methods and alternative solutions for existing problems. However, in the face of an increasingly globalized competitive landscape, it becomes crucial to continuously challenge our own assumptions. In Germany’s innovation ecosystem, incremental improvements still often prevail. According to the EFI Report 2023 (Expert Commission on Research and Innovation), Germany excels in “hidden champions” and engineering expertise—i.e., the time-honored optimization of existing processes—but is too hesitant when it comes to radical innovation approaches. The founding of the Agency for Breakthrough Innovations (SPRIND) in 2019 was an attempt to close this gap. Its stated goal: to fund high-risk, high-potential projects entirely outside traditional funding logics. Early examples include a completely novel ventilator developed in 100 days (a pandemic project) and an AI-powered mechanism for detecting so-called deep fakes.

Breakthrough innovations can’t be generated at the push of a button. But we can create the conditions that make them more likely: from establishing spaces for experimentation, to fostering bold visions and building bridges between disciplines – inter- and transdisciplinarity – to promoting a culture that rewards the courage to fail, there are many ways to start embracing tomorrow’s possibilities today.

The (hi-)story of Silicon Valley shows that the next great breakthrough often begins where a few people dare to imagine the unthinkable – and are willing to risk everything.
The process described as breakthrough innovation is less a destination than a departure point. Those who today invest in breakthrough innovations and corresponding R&D not only shape the future – they make it possible in the first place.

Christensen, Clayton M. (1997): The Innovator’s Dilemma: The Revolutionary Book that Will Change the Way You Do Business. HarperCollins Publishers, New York.

Jinek, Martin; Chylinski, Christoph; Fonfara, Ines; Hauer, Michael; Doudna, Jennifer A.; Charpentier, Emmanuelle (2012): “A programmable dual-RNA-guided DNA endonuclease in adaptive bacterial immunity.” In: Science, August 17, 2012.

OECD Science, Technology and Innovation Outlook 2021

Schumpeter, Joseph (1942): Capitalism, Socialism and Democracy. Harper & Brothers, New York.