According to the General Accounting Office, to compete in a global economy, companies must effectively exploit research and development to generate future value-added innovative products and processes1 . The challenge of innovation, i.e. the innovator's dilemma, is the irresolvable conflict between staying focused on the current market and at the same time recognizing and exploiting new opportunities that, initially, generate low profit margins2 . It is suggested that companies could circumvent the innovator's dilemma by establishing autonomous yet connected organizations that could identify and exploit emerging markets. The exact nature of these entities is not clear, but many companies have attempted to encourage innovation via a number of organization models, including centralized corporate R&D, advanced engineering groups co-located at manufacturing facilities, divisions, cost-centers, strategic business units, spinouts, and the like. However, the fundamental difficulty associated with the innovator's dilemma is, How is the organization simultaneously "connected to" and "autonomous from" the parent company?