Big companies are typically focused more on running the existing organization than innovating, which is why so many companies such as Google and JetBlue fund their own startups. That's the "outside-in" method and it involves blending existing employees with newly hired professionals for the startup, Aaron Shapiro writes. On the flip side, companies can drive innovation by using the "inside-out" method as well; that involves using incentives to promote individual innovation within an employees' existing role.

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