Innovation Management Watch Summary: “How top performers use innovation to grow within and beyond the core” by McKinsey & Company

Innovation has long been recognized as the lifeblood of corporate growth—but in today’s increasingly uncertain environment, top companies aren’t just innovating to survive. They’re using innovation to strategically expand beyond their traditional markets and outpace competitors. 

A recent McKinsey survey of 1,039 global companies reveals that innovation is now viewed as the most critical factor for driving growth over the next 12 months. Whether industries are undergoing massive disruptions, like in energy, or evolving more gradually, like in retail, top economic performers consistently rely on a broader, more deliberate approach to innovation. 

What sets the leaders apart? They go further than strengthening their core business. High-performing companies are 63% more likely to build or acquire businesses outside their current industry and 50% more likely to expand geographically compared to their peers. They view innovation not just as product development, but as a strategy for market creation, ecosystem disruption, and long-term resilience. 

Examples abound: Taiwan Semiconductor Manufacturing Company grew revenues by 17% annually over decades by innovating in chip manufacturing, reshaping the semiconductor sector. Apple repeatedly expanded into new product categories—redefining music, tablets, and wearable tech. These moves weren’t accidents; they were the result of structured innovation ambitions, deep capability building, and a willingness to disrupt their own business models before competitors could. 

For innovation leaders, this reinforces several emerging imperatives: 

• Extend your core strengths into adjacent and emerging industries, minimizing risk while maximizing opportunity. 

• Hardwire innovation into strategy, not as isolated R&D projects but as an organizational growth engine. 

• Use downturns and uncertainty as moments to double down, not pull back, on innovation investments. 

• Adopt an ecosystem mindset—many future breakthroughs will involve partnerships across traditional industry lines. 

The message is clear: In a world where industry boundaries blur and technological shifts accelerate, innovation must be treated not as an occasional initiative, but as a continuous, expansive discipline. 

Where is your organization placing its innovation bets today—and are they bold enough to not only protect your core, but build the next one? 

This summary is based on the original February 2025 report “How Top Performers Use Innovation to Grow Within and Beyond the Core” by McKinsey & Company. All rights to the original content remain with the respective copyright holders.