The WSJ has an interesting article today about Google’s efforts to combat employee attrition, and support the development of innovative products.  “Innovation reviews” are a good start, to identify and cultivate promising ideas.  However, the potential to generate personal wealth through founding a successful startup is something right now big companies do not offer innovation champions.  And, stock options are not as much of a magnet, as they are when a company is young and experiencing start-up growth. In order to retain stars, companies need to find a way to reward exceptional performance beyond a normal bonus payout and promotion.

Several companies, including Google, have a “Digg” like platform for employees to submit and vote on ideas. Imagine taking that general concept to the next level and creating a securities exchange for internal projects within big companies.  The founders of an idea wold be granted stock by an internal venture capital board that invest in the micro-entities. Initially, the value and priority of projects is determined via internal trading, but when the product launches, there is an IPO, which is open to the public, and if the product turns out to be a runaway success, the founders of the product would monetarily share in its success, as their micro-entity (product) securities appreciate.

I look forward to your thoughts.