What is an Innovation Strategy and why do many organizations lack one?

This blog is part of a 4-part series by RevelX on innovation strategy—designed for leaders who want to move beyond buzzwords and build a future-ready organization.

In this series, we explore:

1. Why innovation strategy matters
2. How to build one in practice
3. How RevelX integrates AI into innovation strategy development
4. The most important question stakeholders ask about innovation strategy (FAQ)

Whether you’re shaping your first innovation roadmap or refining your strategic focus, this series will give you the tools and perspectives to lead with confidence.

In an era of disruptive technologies, social transformation, and economic uncertainty, innovation is not a luxury. It is a necessity. Yet, RevelX research among almost 1000 companies shows that 60% do not have a clear innovation strategy. And that is problematic. Because without direction, innovation becomes ad hoc, random, and rarely effective.

An innovation strategy is the plan that outlines how innovation contributes to the long-term relevance and success of an organization. It defines:

• What you innovate on (innovation ambitions and themes)
• Why you innovate (drivers of disruption)
• How you innovate (roadmap, capabilities, partnerships)

A strong innovation strategy ensures that innovation is not separate from your business strategy, but complements and reinforces it.

From our benchmark data:

• 52% of companies have no clear view of future disruptions
• 61% underinvest in long-term innovation initiatives
• 60% lack a well-defined innovation strategy

The root causes:

• Short-term focus: Quarterly targets dominate at the expense of long-term vision
• Tunnel vision: Too internally focused, too few external signals
• Lack of ownership: Innovation is not embedded in leadership responsibilities

RevelX developed the Innovation Strategy Canvas, a framework based on hundreds of innovation programs. The six components:

1. Drivers of disruption – What major trends, technologies, and customer needs could reshape your industry?
2. Innovation readiness – How mature is your organization in terms of innovation culture, processes, and leadership?
3. Innovation ambition & themes – What is your BHAG? Which innovation domains best support it?
4. Innovation roadmap – Which concrete projects will you pursue across the three innovation horizons?
5. Innovation enablers – Think governance, skills, tooling, and innovation structure.
6. Innovation North Star & targets – What are your measurable innovation goals? Where are you heading?

Companies with a defined innovation strategy:

• Respond more quickly to disruption
• Have a more balanced innovation funnel
• Embed innovation as core business

Our research shows that 76% of high-performing companies do have a clearly defined innovation strategy.