The relationship between startups and large companies has evolved into a synergistic duet, driven by the widespread adoption of open innovation. Organizations have recognized that relying solely on internal R&D is insufficient to stay at the forefront of technological advancement. Instead, collaborating with startups provides access to agile innovation, fresh perspectives, and niche expertise. This mindset has fostered a culture of engagement and creativity within organizations, culminating in the proliferation of startup competitions. Initially designed to encourage internal idea generation and celebrate standout internal projects, these competitions have often rewarded participants with prizes or grants. The goal was not only to surface innovative concepts but also to embed a culture of innovation throughout the organization.
Over time, these initiatives have matured into staples of the corporate IT environment, functioning as tools to boost employee retention and morale. However, connecting these competitions to corporate venture funds—more accustomed to investing in mature, Series A-level startups—remains a challenge. As a result, the Return on Investment (ROI) of such competitions is frequently evaluated against metrics like employee engagement, internal productivity gains, or the success of internal communication campaigns, rather than their potential to unlock new business models. The competitions often remain internally focused, limited to ideas generated by employees, and heavily influenced by organizational norms and constraints. This inward-looking approach means that the competitions rarely capitalize on the expertise and dynamism of the broader startup ecosystem, where cutting-edge innovation thrives. Consequently, they fall short of achieving their full strategic potential.
To address these limitations, the LARBO Club has introduced a groundbreaking concept: the LARBO Innovation Tour, designed to revolutionize startup competitions. This 10-month experience blends various innovation-driven activities, including 10 meetups, 2 hackathons, and an acceleration program. Unlike traditional competitions that reward winners with prizes, the LARBO Innovation Tour focuses on training internal startups in close collaboration with external tech experts and the wider innovation ecosystem. A startup studio further enhances this process, ensuring that promising ideas are refined and developed into viable, growth-oriented companies. This approach fosters deeper integration between internal and external innovation networks, breaking down silos and amplifying impact.
The LARBO Innovation Tour also redefines ROI by delivering sustained value across multiple dimensions. It generates year-round internal and external communication opportunities, amplifying the organization’s visibility as an innovation leader. Moreover, it includes a structured pathway to help companies secure funding and attract investment for their projects, even if they fall outside the organization’s current strategic focus. This forward-thinking approach allows companies to make calculated bets on diversification, exploring new revenue streams while retaining the flexibility to pivot. By merging internal innovation with external expertise and creating pathways for growth and funding, the LARBO Innovation Tour exemplifies how startup competitions can evolve to achieve strategic and transformative outcomes.