Breakthroughs often occur, both in research and product innovation, when innovative pioneers succeed in combining two disciplines, or technologies, not previously integrated. For example: The Japanese engineer who combined digital photography with cell phones. Or, in the early 1970s, when Israeli scholars Amos Tversky (z’l) and Daniel Kahneman brought models and methods of psychology to economics. 

A new breakthrough is occurring, as neuroscience (which uses the imaging of brain activity to infer details about how the brain works) combines with economics and decision science, to create “neuro-economics*.”     

Innovators can learn much from neuroeconomics. Here is one small example.

Neuroscientists have found that there is a specialized area in the brain (possibly, in the prefrontal area known as Brodman 10) where ‘theory of mind’ (i.e. knowing how another person thinks, and how another person thinks about you) is processed. Neuroscientists believe that some people have this ability innately, genetically. Their Brodman 10 brain centers become very active (as shown by the color red on function MRI images) when, for instance, some subjects play strategic games, requiring them to assess other players’ moves. For other people, the same brain center remains cold, color blue. 

Successful innovation management requires innovators to predict how competitors will react when our innovation is introduced to the marketplace, and to prepare strategic responses. What are our competitors likely to do? they ask. This is the business context of ‘theory of mind’ and Brodman 10.

Innovators should ask themselves:
• Am I good at accurately anticipating the responses of other people? Or am I very poor at this? If poor, can I strengthen this skill through practice?
• If I am poor at it – How will I find others, and make them part of my team, who are good at it?
You can successfully complete 9 of the 10 innovation stages, but fail at the 10th (market launch), if you lack “theory of mind”. Analyze yourself – and prepare in advance. 
______________________________________________

*Colin Camerer, George Loewenstein & Drazen Prelec, “Neuroeconomics: How neuroscience can inform economics”, in: S. Maital, ed., Recent Advances in Behavioral Economics (Edward Elgar: Cheltenham, UK, 2007). 
**Special thanks to Ben Gilad, author of the forthcoming book Business War Games, for providing the insight described in this blog.