Technology Scouting: Why It Works – A Harvard Business Review Published Study
Harvard Business Review Technology Scouting Study
Technology Scouting Can Increase the Rate and Potential for Meaningful Innovation
Competitive, innovative industries must always keep their sights on the horizon for emerging technologies set to disrupt their business. Whether it’s the R&D, product development, marketing, or engineering department, companies must better align their resources to collaborate and ideate the best new ideas for market. If you don’t have a dedicated innovation team, how do you identify what areas to do technology discovery and set goals for your Innovation Portfolio? The Harvard Business Review article “How Big Companies Should Scout New Technologies” provides advice for your changing innovation goals.
The Risks of Stagnation: The Cost of Falling Behind
Failing to innovate or introduce new technologies doesn’t just mean missing out on opportunities—it can threaten a company’s very survival. Organizations that stick with business as usual risk becoming irrelevant as customer needs, market trends, and competitive landscapes evolve. The marketplace tends to reward those who adapt and adopt; those who don’t may find themselves bypassed by nimbler competitors.
We’ve seen entire industries transformed—and some stalwart names left in the dust—when they waited too long to respond to major shifts, whether it was the move to smartphones or the rise of streaming services. The cautionary tale is that without a continuous commitment to innovation, even the most recognizable companies can fade from public consciousness, lose market share, or be forced to play catch-up in a race that moves faster every year.
Another study conducted by the Harvard Business Review(//hbr.org/2017/07/a-study-shows-how-to-find-new-ideas-inside-and-outside-the-company) makes the case for technology scouting while also admitting that it can turn into a double-edged sword when executed poorly. The research clearly shows that connecting with a wide range of external resources, including: universities, competitors and research institutions, can increase the rate of and potential for meaningful innovation. However, dedicating too much time to these external efforts can decrease current productivity and cause employees to turn away from internal relationships that have the same potential to yield innovative new ideas. As with most things in life, fully utilizing technology scouting comes down to achieving a balance on several different fronts.
When Does Technology Scouting Make Sense?
While technology scouting offers tremendous opportunities, it’s not always the right approach. There are several scenarios where this strategy shines:
- Saving Research Time and Resources: Building a solution from scratch is costly and time-consuming, with no guaranteed success. Tapping into external innovations not only saves precious resources, but also allows your R&D teams to focus on other high-priority projects.
- Maintaining a Competitive Edge: In fast-paced industries, relying solely on in-house technology makes it almost impossible to keep up. By scouting and adopting innovations from startups, universities, and even competitors, companies can stay ahead of the curve and reduce market rivalry.
- Gaining Early Mover Advantage: Rather than enduring endless trial-and-error cycles, companies can introduce new technologies to market faster, attracting new clients and satisfying existing ones by being first to address their needs.
- Maximizing Time for Product Launch: With more time freed from development cycles, teams can focus on strategic product launches and crafting future policies to drive growth.
- Supporting R&D Teams with Specialized Tech: Sometimes, internal teams hit a wall due to gaps in expertise or resources. Technology scouting bridges these gaps, connecting you with organizations that offer the missing pieces, often with minimal investment.
If your innovation goals align with these scenarios, technology scouting can be a powerful lever. But, as Harvard’s research cautions, the key is to strike the right balance between external discovery and nurturing the internal relationships that are just as critical to breakthrough ideas.
Why Companies Overlook Existing Solutions
Let’s face it—today’s technology landscape is brimming with more tools, products, and resources than ever before, courtesy of everyone from Silicon Valley startups to pioneering university labs. Yet despite this abundance, many organizations still find themselves attempting to reinvent the wheel, pouring valuable time and capital into developing proprietary solutions for challenges that have, in many cases, already been tackled and refined elsewhere.
So why does this happen? Often, it comes down to a lack of visibility into what’s truly available. Teams become siloed or hyper-focused on internal projects, unintentionally missing opportunities to leverage proven technologies or adapt ideas that already work. Instead of casting a wide net to scout for external solutions—be it from partners, industry peers, or global research institutions—companies sometimes default to building in-house, believing it will yield a better or more tailored outcome. But this closed-loop approach can backfire:
- Duplicated effort: Valuable resources are spent recreating established technologies.
- Slower time-to-market: Teams lose the advantage of speed that comes with adopting ready-made or adaptable solutions.
- Missed innovation: Energy is diverted from uncovering genuinely unique breakthroughs to solving problems that others have already addressed.
The lesson? Access to external ideas and effective technology scouting isn’t just a nice-to-have; it’s a competitive necessity—one that helps organizations avoid redundant development and maximize their innovation potential.
Technology Scouting: Is an Internal or External Approach Best?
Ultimately, the success of external technology scouting comes down to a matter of time. On any given day, an average employee will spend time answering emails, attending meetings and collaborating with colleagues. That doesn’t exactly leave a lot of time to cultivate meaningful relationships with external sources. As a result, the Harvard study found that in contrast to most assumptions about open innovation, “respondent’s most common sources of inspiration for new ideas were their colleagues inside, rather than outside, the firm.”
Those who were able to devote enough time to cultivating relationships with external resources were able to achieve innovation that was meaningful in both quality and quantity. However, those who created a broad network and were perhaps guilty of networking for networking’s sake, were not able to discover areas for innovation and learn how to turn valuable information into actionable ideas. At the same time, they were dedicating so much time to external relationships that they became disengaged from their own organization. With the right balance, external technology scouting can be a powerful resource, but a haphazard approach can create a slippery slope that eats away at productivity.
Ezassi Technology Discovery and Innovation Management Software
Discover Emerging Technology and Manage your Innovation Projects
Quickly transition research to project pipelines with Ezassi’s Innovation Management platform
How to Successfully Innovate Externally with Technology Scouting
The researchers used this information to develop a map for ways to make sure that company is successfully using external resources to drive innovation. Again, it all comes down to time management. Not every employee should be fixated on creating external innovations. Sometimes the solution is as simple as encouraging employees to interact more with other departments within the firm. Managers should be actively identifying employee strengths and deciding who should be building networks within the company and who should be tapped for building external networks.
The Main Steps in the Technology Scouting Process
So how does an organization move from idea to execution when scouting for new technology? The process typically unfolds through several key stages—each requiring careful attention to both big-picture goals and the nuts and bolts of implementation.
1. Define and Interpret Needs
Begin by clearly defining the technological challenge or opportunity. Is your goal to supplement existing systems, or are you seeking a disruptive, standalone solution? For example, a food company might begin by identifying the need for an alternative protein source for animal feed.
2. Search and Discover
Next, cast a wide net. This means researching both commercial offerings and emerging research—from companies and universities to government labs and startups. At this stage, scouting platforms or technology databases can help streamline the search by matching your needs with what’s available. Continuing the earlier example, this may involve uncovering protein sources like canola, alfalfa, or barley.
3. Evaluate and Shortlist
Once potential solutions are identified, it’s time to evaluate them against a set of criteria. Considerations might include cost, scalability, sustainability (such as carbon footprint), technical viability, and alignment with your strategic goals. It’s often helpful to rank or score options to ensure the most promising avenues stand out.
4. Plan and Implement
Finally, after selecting the top candidates, turn analysis into action. Create a plan for piloting or integrating the new technology—whether through partnership, licensing, or internal development. This might involve small-scale trials, forming external collaborations, or drawing up a roadmap for broader rollout. Each implementation plan should address both immediate needs and the potential for longer-term innovation.
The Interpretation Phase of Technology Scouting
In the early stages of technology scouting, interpretation serves as the critical launchpad for innovation. This phase starts once a company has clearly identified its technology needs—not just what’s “nice to have,” but what’s essential for their next leap forward. Here, the challenge is not merely to find something new and shiny, but rather to pinpoint whether the organization needs a completely new solution or a technology that can easily integrate with existing processes and systems.
For instance, imagine a scenario where a large agricultural firm is searching for a sustainable alternative protein source for animal feed. Instead of rushing straight to the latest developments from startup conferences or university labs, a savvy technology scout begins by digging into what specific outcome the business actually requires. Is the end goal technological disruption, compatibility with existing feed processes, or improvement of supply chain sustainability? This sort of strategic interpretation shapes the trajectory of the entire scouting process.
By thoughtfully framing the company’s needs, the interpretation phase helps narrow the field and ensures resources are spent on pursuing the right ideas—rather than chasing every passing technological trend. It’s about getting clear on the problem before running after solutions.
By following these structured steps, organizations can transform the potential of external inspirations into real, measurable outcomes—making the most of the innovation process without unnecessary risk or wasted effort.
External innovation also relies heavily on the ability to recognize good ideas and be able to devote time to discovering how that idea may benefit the company. All too often, employees get caught up in networking and end up with a long list of contacts, but are unable to convert those connections into meaningful innovations. It is better to establish deeper connections with a fewer external resources than to be spread too thin.
Finally, those who are cultivating external relationships also need to make sure that they are allocating time to develop new ideas and share findings with internal colleagues. As the study concludes: “Companies thus need to ensure that these employees not only devote time to networking externally, but also prioritize absorbing and applying what they learn—and diffusing this knowledge internally.” It takes time to process information and explore how new technology could be used to benefit the company. Bringing the germ of an idea to internal resources for development may be the best way to find the right balance between internal and external resources.
Real-World Examples: Technology Scouting in Food & Packaging
The impact of technology scouting often becomes clear through tangible case studies. In the food and packaging sectors, forward-thinking organizations have harnessed this approach to propel both sustainability and product quality.
Take the challenge of developing sustainable packaging for lab-grown foods. Facing looming deadlines and supply chain constraints, one company looked beyond internal resources and began to explore external materials and partners. Through open innovation and the strategic use of technology scouting, they identified a set of emerging biodegradable materials—options previously unseen within their own R&D circles. After sifting through these possibilities, only the most promising candidates were advanced for in-house testing. This targeted, externally informed approach led not only to a new shelf-stable, biodegradable package, but also helped the company bring its next product line to market on time.
In another scenario, a packaging manufacturer sought compostable alternatives to traditional plastics. Rather than simply looking to adjacent competitors, the company’s innovation team identified pioneers in unrelated industries—such as the medical device sector and even origami-inspired materials used by NASA for compact yet expandable satellite panels. By adapting these discoveries, the team developed packaging solutions that combined high performance with environmental responsibility.
Some key outcomes of external technology scouting in these cases included:
- Shortlisting of commercially viable biodegradable materials
- Successful adaptation of techniques from fields like aerospace (origami-folding concepts)
- Expanded collaboration with both established companies and new startups from a range of sectors
- Acceleration of time-to-market by focusing only on solutions with demonstrated scalability and regulatory cleared pathways
These examples underscore how leveraging the collective ingenuity outside organizational walls—whether it’s universities, novel startups, or even innovations from industries like aerospace—can lead to unique and practical solutions in food and packaging.
Drawing Inspiration from Unlikely Sources
To put technology scouting into perspective, consider how NASA solved the challenge of fitting large solar panels onto compact spacecraft using techniques borrowed from the Japanese art of origami. By applying folding principles, engineers managed to pack expansive panels into tight spaces, unfolding them only once in orbit.
This kind of cross-disciplinary thinking is at the very heart of technology scouting. It’s about recognizing useful concepts—sometimes from seemingly unrelated fields—and adapting them for new, practical applications within your own organization. Rather than reinventing the wheel, the most successful innovators keep an open mind and scan for ideas everywhere, drawing inspiration from art, nature, or even age-old traditions. The key lesson: external innovation often means borrowing a page from someone else’s playbook and reimagining it to fit your unique needs.
Putting Technology Scouting into Action
Once a promising idea or technology has been uncovered and evaluated, the next critical step is implementing that solution within your organization. But what does this phase actually involve?
At its core, the implementation phase is about moving from inspired possibility to practical reality. This often requires clear strategies for collaboration—sometimes bringing together small, agile teams for rapid experimentation, other times aligning larger groups for a more gradual rollout.
Companies need to consider the most effective approach for each situation:
- Fast-track pilot projects can test out concepts on a smaller scale before wider adoption, much like how Google often incubates new tools internally before a public release.
- Long-term planning may be necessary when the innovation impacts strategy or requires significant investment, as seen when automotive giants like Ford or Toyota embrace new manufacturing technologies.
Across all scenarios, successful implementation hinges on focused coordination: setting measurable goals, assigning ownership, and ensuring everybody is aligned on both the benefits and intended outcomes. The key is to avoid paralysis by over-analysis—don’t let great ideas collect dust on the shelf. Actively drive them from concept to impact with intention and clarity.
The Discovery Phase of Technology Scouting
The discovery phase is where the true groundwork of technology scouting begins. Rather than casting a wide, unfocused net, this stage is about targeted exploration—identifying specific external companies, researchers, or emerging technologies that closely align with your innovation goals.
During this phase, teams systematically scan the market for promising solutions, review scientific literature, attend relevant conferences, and tap into existing databases or networks. The process often includes:
- Reviewing commercial offerings and ongoing research projects
- Evaluating the potential fit for development or partnership
- Shortlisting technologies, products, or methods that could fill a defined need
For instance, if a company is searching for sustainable alternatives in animal nutrition, discovery might involve analyzing protein sources like canola, barley, or alfalfa. Each step is guided by clear criteria—the aim is not just to find what’s new, but what’s most relevant and actionable for the organization.
Finding the right external partners or technologies is rarely a straightforward task, but by approaching the discovery phase methodically, businesses can uncover innovations that truly drive progress.
Freeing Up Time to Launch New Products
One significant advantage of technology scouting is the ability to accelerate the innovation process. Instead of reinventing the wheel by developing entirely new technologies internally—which often requires extensive time for research, development, and trial and error—companies can adopt or adapt proven solutions from external sources. This strategic shortcut means employees can spend less time on foundational R&D and more time preparing for a successful product launch.
With the extra bandwidth, teams can shift their focus to critical pre-launch activities, such as crafting go-to-market strategies, refining branding and messaging, and fine-tuning customer outreach plans. By leveraging external innovations, companies are better positioned to anticipate market needs and quickly respond with polished, well-supported products. In turn, this approach not only speeds up time-to-market but also allows for a more thoughtful, coordinated rollout of new offerings.
Evaluating Alternative Technological Solutions: Key Criteria
When it comes to assessing alternative technological solutions—whether for food packaging, protein sources, or any other innovation—there are several important factors to consider. For example:
- Environmental Impact: Look at measures like carbon footprint and resource consumption. Responsible companies such as Unilever and Nestlé increasingly prioritize solutions that minimize harm to the planet.
- Nutritional Value and Efficacy: For projects involving food innovations, it’s essential to weigh the digestibility, nutrient content, and health implications of each option.
- Availability and Scalability: A creative idea is only as useful as its potential to meet demand. Consider the regional or global availability of the resources required and whether production can be scaled sustainably.
- Regulatory Compliance: The best solutions fit within regional legal frameworks—think of recent shifts in food labeling requirements in Europe and North America.
- Cost and Feasibility: Even the most cutting-edge solution needs to make sense financially, balancing performance with affordability.
After evaluating against these benchmarks, companies can prioritize solutions that align best with their goals—making it much easier to identify innovation opportunities that are both impactful and realistic.
Why External Technology Scouting is Successful
As the researchers found, companies who created an external network and were able to make use of the information they acquired, were able to better capitalize on internal resources and successfully drive innovation. Technology scouting provides a way to streamline and accelerate this process so that employees find the right balance and manage their time effectively. Utilizing scouting technology is the perfect way to avoid some of the common pitfalls of external innovation efforts.
Leveraging Early Mover Advantage with Technology Scouting
One of the key benefits of technology scouting is unlocking the early mover advantage. By systematically scanning emerging trends and solutions—often before they become mainstream—companies can adopt innovative technologies ahead of competitors. This proactive approach helps you bypass the drawn-out trial-and-error phase that comes with untested developments.
Early access to new technologies lets you pilot and refine offerings, respond quickly to shifting market demands, and establish your brand as a forward-thinking leader. In practical terms, it means meeting your customers’ needs before the competition even realizes there’s an opportunity. This strengthens client loyalty and can position your business in front of entirely new audiences.
By embracing technology scouting, organizations like Procter & Gamble and Samsung have accelerated the adoption of breakthrough ideas, allowing them to set industry standards rather than follow them. For any business aiming to expand their reach and solidify their reputation as innovators, the early mover advantage made possible by effective technology scouting can be a game-changer.
Scouting technology, from companies like Ezassi, works to cultivate relationships by relying on an existing network of curated problem-solvers and implementing automated functions. Continuous outreach efforts mean maximum return on efforts that won’t tie up employees’ time. In addition, searchbot technology will constantly work to scour the web for new information and experts can submit ideas through a user-friendly dashboard that will then score ideas according to a pre-determined set of criteria. This technology means that employees can develop meaningful relationships and identify new areas for innovation while also freeing up vital time that is necessary to process and develop ideas.
Bridging Technology Gaps Without Extra Overhead
Often, R&D teams encounter roadblocks simply because the technology they need falls outside their core expertise. In these cases, technology scouting acts as a vital bridge, linking organizations to external businesses or experts who possess the required know-how. By tapping into these expanded networks, companies can access tech solutions with minimal financial investment—solving problems more efficiently without the need to build every capability in-house.
This kind of scouting platform doesn’t just automate the search; it opens doors for R&D teams to connect with innovators across industries, accelerating progress while keeping internal resources focused and agile.
Ultimately, the study revealed that executing external scouting may not be as straightforward as it appears at first glance. According to the researchers, without the right balance, external networking can be more of a distraction than a tool for progress: “cultivating a broad external network takes more time than people realize and involves certain tradeoffs. Our research shows that many people may be misallocating their time by trying to expand their external networks without devoting the additional time needed to truly learn how they can benefit from the ideas they come upon.”
Fortunately, advances in scouting technology can help employees and companies automate the networking and discovery process so that there is a focus on developing promising ideas. With the right combination of scouting technology and personal networking outreach, companies can leverage external resources to drive innovation within their company.
