Innovation has become an essential capability for any large public company if it wants to remain competitive. With some studies suggesting that 50% of the companies in the S&P 500 list could be replaced over the next 10 years, innovation may even be critical for survival. Yet innovation can be uncertain and costly, putting profits at risk. How can boards ensure that companies are innovating sufficiently and effectively?

Lead Director Network (LDN) members met on March 21 in Washington, DC, to discuss how the board oversees innovation. This issue of ViewPoints synthesizes that discussion and conversations leading up to it. It also summarizes a discussion about potential tax and trade policy changes by the Trump administration.