Lighting the GE Way

Think Like Edison.

Thomas Edison was an inventor out to solve problems. Don't set out to invent new technology merely for technology's sake. Instead, define innovation in terms of a riddle you are seeking to solve.

Big ideas happen at the fringes.

Recruit and retain talent from a broad spectrum of technical capabilities. When big brains look at problems in a different way -- for example, physicists taking on chemistry problems -- that's when breakthroughs can happen.

Make innovation pay its way.

Business units should pony up for research they actually want rather than headquarters doling out all of R&D's budget, hoping for a breakthrough. Give early funding only to a handful of promising technologies.

Set intermediate goals.

When managing long-term innovation areas, periodically review technical milestones along the way to monitor progress. Prioritize the importance of each technical problem to solve, then chip away one at a time.

Bet on the industry, not the technology.

GE can't predict better than anyone else about when, or even if, game-changing technologies will take off. But by focusing on an industry such as energy, it can place big bets within it in an effort to stay in the lead.

Ryan Underwood is a Fast Company staff writer.