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Early industrial research laboratories were closely tied to the needs of business, a point that emerges strikingly in the case of Eastman Kodak, where the principles laid down by George Eastman and Kenneth Mees before the First World War continued to govern research until well after the Second World War. But industrial research is also a gamble involving decisions over which projects should be pursued and which should be dropped. Ultimately Kodak evolved a conservative management culture, one that responded sluggishly to new opportunities and failed to adapt rapidly enough to market realities. In a classic case of the ‘innovator’s dilemma’, Kodak continued to bet on its dominance in an increasingly outmoded technology, with disastrous consequences.
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