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Submitted By varunkhanna69
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Research series

The role of the board in innovation

PREPARED BY

Dr Robert Kay and Dr Chris Goldspink

GOVERNANCE LEADERSHIP CENTRE

companydirectors.com.au/glc

Contents

Introduction 3
Innovation and directorship: a role at the core of good governance?

4

Reading the context and steering the approach

5

CEOs and innovation

7

Differences between the public and private sectors

12

Conclusion13
References14

2

GOVERNANCE LEADERSHIP CENTRE

companydirectors.com.au/glc

Introduction

What is the role of the board in innovation? There are mixed views on this question within the governance literature. Part of the problem relates to the ill-defined nature of innovation itself, how it relates to the strategy of the organisation and the division of responsibilities between the board and the executive.
This paper will draw on research conducted for the
AICD during 2014 (Kay and Goldspink 2015), involving interviews with over 100 Chairs of listed, private, public and not for profit boards, as well as two other studies conducted by the authors. These additional studies involved interviews with 25 CEOs drawn from both listed and private organisations, as well as 25
Departmental Secretaries and Directors-General drawn from both the federal and state public sectors. These latter studies canvassed executive views on what innovation means to them and what it takes to innovate effectively within their respective sectors (Kay and
Goldspink 2012a, 2012b).
In combination, these three studies show there is a very real role for the board in the stewardship of innovation.
This role changes with circumstances and the sector, and, like most aspects of governance, is best achieved by working as a team with the executive of the organisation.

” In combination, these three studies show there is a very real role for the board in the stewardship of innovation.”

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