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Developing organisational capacity

Developing organisational capacity to secure the time and resources to help diffuse an innovation. This might include the ability to incubate and spin off innovations from within the organisation. One innovative approach to spinning out is the Bunsha method - when a company gets too big it splits itself up. Here, the company director picks a director for the new company from within the existing organisation. This new director is given enough start up capital and decides what he/she needs in terms of staff and equipment. The parent company supports the new company until it is financially sustainable – only then can the old and new companies compete against each other. The hope is that eventually, the new company will grow until it too divides itself up creating another new firm.