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The chief innovation officer of a Fortune 500 company recently relocated to a Silicon Valley outpost far from her corporate headquarters. She now spends most of her time holding court with venture capitalists and entrepreneurs about stakes in hot start-ups. Her goal is not to invest in startups in order to generate returns—even a 500 percent return on her investments would not be material to her corporation’s financials. Instead, she is essentially outsourcing her company’s innovation strategy to start-ups.

Think Big, Start Small and Learn Fast: 8 Rules for Corporate Innovation