How MBAs Drive Innovation and Economic Impact

Widely regarded as one of the greatest innovators of our time, iconic American entrepreneur and Apple founder Steve Jobs once said, “Innovation distinguishes between a leader and a follower.” But, why is innovation so important and how can today’s business schools optimally nurture it to create tomorrow’s business leaders? Let’s take a closer look at the innovation imperative, along with how one MBA program is getting it right when it comes to putting innovation at the center of its curriculum.

Why Innovation Matters

Within the crowded field of startups, innovation is a differentiating factor. Through their vision, creative thinking and outside-the-box strategies, entrepreneurs don’t just introduce new products and services to society, they create value in exponential ways. And while they’re often remembered for their specific contributions, their collective impact on the economy is also profound. From direct employment to purchasing office space, supplies and services, entrepreneurs -- and the startups they lead -- offer a critical jumpstart to the economy’s engine.

But established companies, too, stand to gain from entrepreneurially-inspired leaders. Dubbed “intrapreneurship,” this mindset involves applying entrepreneurial approaches within larger organizations, and can be instrumental in bucking conventional boundaries and cultivating innovation.

There’s no denying that innovation has the potential to power progress, fuel the economy, and reinvent the world, and that MBA students -- tasked with leading the charge -- have tremendous opportunities ahead of them. But innovation doesn’t happen on its own, which is what makes forward-thinking business schools such an integral part of paving the way.

Getting it Right: The Rady School of Management

One business school whose grads are coming out ahead thanks to a curriculum which integrates innovation as a core component for both aspiring entrepreneurs and intrapreneurs? The University of California San Diego’s Rady School of Management.

Rady School representative Joleen Schultz discussed the school’s unique approach, “A graduate of the Rady School of Management is taught to think entrepreneurially,” Schultz said. “This thinking is developed throughout their coursework over the two-year period and is equally relevant for an individual starting their own company as an intrapreneur who will drive change within an organization.”

While theory is a valuable part of any businessschool coursework, it’s only one part of the equation. The Rady School’s emphasis on the equally important act of putting theory into practice distinguishes it from more conventional curricula.

Take, for example, its signature Lab to Market (L2M) course, the hallmark of the Rady MBA program. This three-part sequence originates in the classroom and progresses into a project-based environment. During this time, student teams perform market research and validation; conduct feasibility studies; and ultimately develop a business case, business plan and go-to-market strategy. They also work closely with the Rady School’s robust network of external advisers and coaches while generating business ideas, evaluating ideas, and gaining exposure to commercialization opportunities. One thing L2M is not? A classroom simulation. Instead, it’s a real, immersive vehicle for students to design and launch their own startup companies.

Just as innovation doesn’t happen by rote, nor does it happen in a vacuum. “Ideas great or good do not seamlessly work their way from silo to silo,” according to A.G. Lafley and Ram Charan, authors of The Game Changer: How Every Leader Can Drive Everyday Innovation. Rather, “this process can only happen when people do that simple, profound thing — connect to share problems, opportunities, and learning. To put it another way, anyone can innovate, but practically no one can innovate alone.”

This approach to innovation is alive and well at the Rady School. “The Rady School’s approach to entrepreneurship education is unique in its focus on collaboration,” said Schultz “Students collaborate in the classroom, with corporate and community partners, research institutions and academic units across the UC San Diego campus.” Additionally, the Rady Schools prime location at the heart of San Diego’s flourishing life sciences, technology, and healthcare IT industries further supports student engagement with the entire San Diego innovation ecosystem.

The school’s non-profit StartR accelerator program, founded by a group of Rady School students, creates even more connections by offering workshops, mentoring, advice and access to other resources for students and alumni with early-stage companies. At the conclusion of the six-month program, participants present their pitches at Demo Day, attended by investors, industry experts and the San Diego community. But is the program working? The success stories speak for themselves.

And these are just two examples of the ways the Rady School fosters innovation. From the mystartupXX program, which fosters female entrepreneurship by matching teams of students with mentors and advisors, to the student-run Rady Venture Fund, which links students with seasoned venture investors and investment capital, opportunities for entrepreneurship and collaboration are interwoven throughout the fabric of the Rady experience -- with the numbers to back it up: 115 still-operational startup companies have been launched in the decade since the school was founded.

With so many global challenges ahead, the need for a next generation of business innovators armed with the skills to navigate the way is paramount. The first step for aspiring MBAs looking to take on key leadership and entrepreneurial roles? Discovering the value of learning and doing, and choosing a business school curriculum which is keenly aligned with these priorities.