In the realm of startups, we frequently idealize the grind, the pitch presentations, and the market momentum. However, underlying every prosperous enterprise resides a factor that is sometimes overlooked yet far more essential: innovation. Invention, rather than mere innovation, delivers the essential breakthrough, the non-obvious insight, or the innovative process that converts a simple idea into a scalable product or business strategy. Invention is not a component of innovation. It constitutes its fundamental material.
The initial phases of any startup require a mindset that transcends market analysis and business model development. It necessitates a form of creative cognition that is both stringent and transformative. The capacity to contest established paradigms, develop innovative solutions, and safeguard novel forms of intellectual property necessitates a mindset more akin to that of an inventor than that of an operator. Founders who prioritize creation at the core do not merely address problems; they reconstitute them.
However, innovation is predominantly absent from the majority of startup ecosystems. Accelerator programs often emphasize the refinement of pitches rather than the profundity of the underlying problems. Venture funding frequently awaits market confirmation prior to acknowledging innovation. The outcome is a plethora of iterations and a deficiency of genuine breakthroughs. This disparity is particularly evident in areas attempting to shift from resource-dependent or service-oriented economies to knowledge-based ones. In the absence of a steady influx of inventors, no quantity of incubators will produce transformative startups.
Israel exemplifies a successful approach to bridge this divide. Commonly known as the “Startup Nation,” Israel established its ecosystem not merely on investor preparedness but on inventor preparedness. Years of investment in defense research, academic transfer initiatives, and innovation-focused education have cultivated a generation of engineers, technicians, and military personnel adept at first principles thinking. Their innovations, frequently originating within military units or research laboratories, subsequently developed into the foundation of numerous highly successful enterprises globally. The lesson from Israel is not to duplicate its military but to acknowledge that fostering innovation, when deliberately nurtured and connected to commercialization avenues, is a national policy.
A global imperative is the structural enhancement of innovative thinking, particularly among young, marginalized demographics and domain specialists who may not yet identify as entrepreneurs. Invention competitions, inventor mentorship, and early-stage intellectual property support are essential, not optional. These platforms foster not only innovative technologies but also new entrepreneurs—individuals who are educated to think critically and globally. Promoting early-stage innovation fosters resilience within startup ecosystems; when capital constricts or markets fluctuate, imaginative founders adapt with conviction rather than desperation.
In recent years, I have had the honor of designing and leading programs that integrate innovation into the core of entrepreneurship. We have empowered hundreds of innovators through national and worldwide platforms, enabling them not only to present their creations but also to develop companies, secure intellectual property, and engage in global startup ecosystems. Our efforts at FICI and through international partnerships under IFIA have demonstrated that when invention is seen as a premier subject, startups achieve both acceleration and profundity. That is what distinguishes everything.
Author: Babak Khodaparast
