Episode Overview
Corporate innovation is everywhere right now, but very few organisations manage to turn bold ideas into real, scalable outcomes. In this episode of the DevReady Podcast, host Andrew Romeo, CEO and Co-Founder of Aerion Technologies and DevReady.Ai, sits down with Spiro El Khoury, Head of Growth (Australia) and founding team member at The Bakery, as well as a mentor at Startmate, to explore why corporate innovation often stalls and what it actually takes to move beyond the proof of concept stage.
Spiro brings a unique perspective from working across corporate venturing, open innovation programs, startup mentorship, and building innovation ecosystems in Australia. Together, Andrew and Spiro unpack the practical frameworks that help corporates execute innovation strategies that deliver measurable business growth, not just good branding.
Corporate Innovation Needs More Than Ideas
Innovation is often treated as a buzzword inside large organisations, but the reality is far more complex. Many corporates launch innovation initiatives with excitement, only to see them fade back into business as usual within six to twelve months.
Spiro explains that successful innovation requires structure, execution, and a repeatable strategy. It is not about running workshops, whiteboarding ideas, or creating innovation theatre for marketing purposes. It is about building an innovation engine that creates real value, reduces disruption risk, and supports long-term growth.
This episode offers practical insight into why innovation fails and what corporates and startups can do differently to succeed.
Meet the Guest: Spiro El Khoury (The Bakery and Startmate)
Spiro El Khoury is a leader in Australia’s corporate innovation and startup ecosystem. As Head of Growth (Australia) at The Bakery, he works with large organisations to design and deliver innovation programs that connect corporates with external talent, emerging technologies, and high-growth startups.
He is also an active mentor at Startmate, helping early-stage founders navigate business model development, customer acquisition, and the challenges of selling into enterprise markets.
Spiro’s work focuses on bridging the gap between corporate complexity and startup agility, ensuring innovation becomes a serious growth strategy rather than a short-lived initiative.
Why Corporate Innovation Fails So Often
Andrew and Spiro explore a key reality: most corporates want innovation, but they struggle to sustain it.
Spiro highlights several common reasons corporate innovation efforts fail:
- Innovation is treated as a side project rather than a core strategy
- Programs lack structure, frameworks, and long-term ownership
- Procurement and decision-making processes slow everything down
- Proof of concept pilots never reach implementation
- Innovation is pursued for branding rather than business outcomes
Andrew adds that innovation is not a six-month experiment. It is a long-term commitment that requires continuous evolution across the organisation.
The Proof of Concept Graveyard: Where Innovation Goes to Die
One of the most powerful concepts discussed is the “proof of concept graveyard”.
Corporates often run pilots with startups or new technologies, but nothing gets implemented at scale. The organisation gathers ideas, runs demos, tests solutions, then stops.
Spiro explains that scaling innovation is harder than launching it, because it requires navigating two worlds:
- Startup agility and speed
- Corporate risk management, politics, and stakeholder complexity
Without a clear pathway from pilot to operations, innovation remains stuck in experimentation rather than delivering impact.
What Open Innovation Really Means
Spiro breaks down the concept of open innovation, which is increasingly essential in today’s fast-changing markets.
Open innovation is based on a simple truth:
Corporates do not have all the best talent or solutions inside their own walls.
Instead of relying only on internal R&D, organisations can tap into the broader innovation ecosystem, including:
- Startups
- Universities
- Researchers
- Venture studios
- Industry partners
Spiro shares examples of companies like Procter & Gamble, who actively seek external solutions to speed up development, reduce risk, and avoid reinventing what already exists.
Open innovation allows corporates to access proven innovation faster and more efficiently.
The Bakery’s Approach: Innovation as a Growth Engine
The Bakery operates as a corporate innovation management firm, helping organisations build sustainable innovation strategies.
Spiro explains that The Bakery supports corporates through:
- Innovation strategy development at C-suite level
- Open innovation challenges and market scanning
- Accelerator and incubator program design
- Corporate venture capital models
- Venture client partnerships with scale-up startups
- Trend analysis across global markets
Rather than replacing internal teams, The Bakery helps amplify and connect innovation efforts into a repeatable engine for growth.
Hybrid Innovation Models: The Corporates Winning the Future
Spiro notes that the most successful corporates do not rely on one innovation model.
They build hybrid innovation ecosystems, where different programs feed into each other, such as:
- Corporate venture capital investing in startups
- Accelerators sourcing new solutions
- Incubators developing internal ventures
- Venture client units becoming customers of scale-ups
This interconnected approach creates a pipeline from idea to execution, allowing corporates to innovate consistently rather than sporadically.
Advice for Startups: How to Access Corporate Customers
Andrew shifts the conversation toward startups trying to break into enterprise markets.
Spiro offers clear advice:
Corporates Want Innovation, But Not High Risk
Large organisations rarely become customers of startups with no traction. They look for:
- Existing customers
- Proven value
- Product-market fit
- A credible track record
Speed Matters More Than Perfection
Spiro encourages founders to get to market quickly rather than waiting for a perfect product. Value today matters more than perfection tomorrow.
Think Strategically About Investors
One standout insight is that startups should consider raising capital from corporate venture arms, such as Google Ventures, because:
- Investors can become customers
- Strategic connections matter as much as funding
- Enterprise access is often the hardest barrier
Enterprise deals may take longer, but they can be transformational, often worth millions and extending runway for years.
Australia’s Innovation Challenge: Inputs vs Outputs
Spiro highlights a major issue in Australia:
Australia performs strongly on innovation inputs, such as research and talent, but lags behind on innovation outputs, meaning commercialisation and scalable impact.
He believes this is partly due to:
- Lack of education in corporate innovation frameworks
- Limited exposure to global best practices
- Risk aversion and slow adoption cycles
To address this, Spiro is helping grow the Corporate Innovation Series, building community, hosting roundtables, and bringing global innovation leaders to Australia through initiatives like the Corporate Innovation Summit.
Final Thoughts: Innovation Requires Execution, Not Theatre
This episode of the DevReady Podcast makes one thing clear: innovation is not about workshops, buzzwords, or branding. It is about building repeatable frameworks that deliver value and help organisations stay ahead of disruption.
Spiro El Khoury provides a grounded, execution-focused view of corporate innovation, offering insights for both enterprise leaders and startups looking to create meaningful partnerships.
If you want to understand why most corporate innovation fails and what it takes to scale beyond proof of concept, this is an essential conversation.
Key Topics Covered in This Episode
- Why corporate innovation initiatives often fail
- Scaling beyond proof of concept
- Open innovation strategy explained
- Corporate venture capital and venture client models
- Building hybrid innovation ecosystems
- Startup mentorship through Startmate
- Navigating procurement and enterprise decision-making
- Innovation education gaps in Australia
- Turning research into commercial outcomes
Useful Links
FAQs
What is corporate innovation?
Corporate innovation refers to how large organisations develop new products, services, business models, or processes to remain competitive and drive growth.
What is open innovation?
Open innovation is the practice of sourcing ideas, solutions, and technologies from outside the organisation, including startups, universities, and external partners.
Why do proof of concepts fail to scale?
Many proof of concepts fail because corporates lack clear pathways to implementation, face internal risk constraints, or do not align stakeholders around execution.
How can startups sell into corporates faster?
Startups need traction, customer proof, and a strong understanding of corporate buying cycles. Building relationships through venture client programs or corporate venture investors can help.
What is a venture client model?
A venture client model is when a corporate becomes a customer of a startup’s solution rather than acquiring the company, allowing faster access to innovation with less risk.
