Innovation can come from without as well as within. Apple is widely assumed to be an innov

ator, locking its engineers away to cook up new ideas and basing products on their moments of inspiration. In fact, its real skill lies in stitching together its own ideas with technologies from outside and then wrapping the results in elegant software and stylish design. Apple is, in short, an orchestrator and integrator of technologies, unafraid to bring in ideas from outside but always adding its own twists.

This approach, known as "network innovation", is not limited to electronics. It has also been embraced by companies such as Procter ＆ Gamble, BT and several drugs giants, all of which have realized the power of admitting that not all good ideas start at home. Making network innovation work involves cultivating contacts with start-ups and academic researchers, constantly scouting for new ideas and ensuring that engineers do not fall prey to "not invented here" syndrome, which always values in-house ideas over those from outside.