Sometimes, Less Innovation Is Better

Research conducted on each innovation for more than 300 Formula 1 race cars over a 30-year period showed that under certain circumstances, the less innovative vehicles performed better. The findings suggest that innovations in a volatile environment are risky - the new technologies are less understood than the conventional technologies, and outcomes are less reliable. Once familiarity develops and the innovations become more stable, they can generate consistent and improved results. The level of turbulence in a given environment can be assessed by the magnitude of change, the frequency of change, and the predictability of change.