Why 80% of Corporate Incubators Fail—and How to Fix It

The Island of Abandoned Toys

After years of working with large organizations, one thing is clear: corporate incubators often fail because they lack champions in the C-suite.

It’s a pattern we’ve seen repeatedly. A team is tasked with driving innovation but is left without direction, resources, or protection. Without proper support, 80% of corporate incubators don’t succeed.

Here’s why C-suite support is essential—and how it can turn your incubator into a thriving engine of growth.

Strategic Focus: Innovation Needs Structure

Corporate innovation is like piloting a speedboat chained to an aircraft carrier—fast but constrained. Without a clear mission, innovation teams often pursue ideas that feel disconnected from the company’s goals, landing on what we call the ‘Island of Abandoned Toys’.

C-suite champions ensure innovation aligns with the company’s strategy. When leadership sets the vision such as, “We’re a shoe company; let’s explore smart footwear or athletic tech”—teams know exactly where to put their energy. 

Focused innovation gets noticed. Scattered efforts? Not so much.

Tactical Commitment: Clearing the Path

Here’s the thing about resources: innovation teams can’t just ask nicely. Someone needs to move mountains (or at least budgets and silos). That someone lies in the C-suite.

We’ve seen it time and again—senior leaders stepping in to remove roadblocks, allocate funds, and protect teams from getting bogged down in corporate red tape. It’s not just about money. It’s about saying, “Hey, these people are allowed to try something different—and fail while they’re at it.”

Without that protection, the corporate machine takes over, and innovation gets sucked back into business-as-usual.

Emotional Support: Inspire Resilience

Innovation is messy, unpredictable, and full of “back to the drawing board” moments. That’s why emotional support from the top matters so much.

We once worked with a CEO who spent a few hours with their incubator team, breaking down how their work fits into the company’s big picture. That simple act of attention? It was a game-changer. The team left inspired, recharged, and ready to tackle their next challenge.

This kind of encouragement keeps teams going when morale is low, and setbacks pile up. It’s not a “nice-to-have”—it builds the resilience teams need to navigate the long road of corporate innovation.

The Bottom Line

C-suite champions make all the difference. They provide the clarity, resources, and motivation that keep innovation alive. Without them, even the best initiatives fizzle out.

So, if your incubator feels stuck, ask yourself this: Who’s championing it from the top?

Because with the right leadership, your incubator won’t just survive—it’ll thrive.