In today's competitive environment, large, mature, technology-based en
terprises must restore the high levels of innovativeness that made the
m great in the first place. Repositioning the research function as par
t of the firm's ''engine of innovation'' should be an important priori
ty. Central to that task in many industries is the capacity to identif
y, develop and exploit wholly new technologies that will give rise to
new classes of customers, channels and uses. At the confluence of emer
gent markets and technologies, innovative success will require that re
search acquire a new set of organizational capabilities. Given the inh
erent unpredictability of the details and tinting of future markets, r
adical incrementalism-the testing of radically new concepts in a serie
s of practical market engagements based on a larger research vision an
d technology strategy-provides a key capability to explore the uncerta
in dynamics of demand.