Loonshots: How to Nurture the Crazy Ideas That Win Wars, Cure Diseases, and Transform Industries

Bahcall, a physicist who founded and ran a biotechnology company, argues that organisations kill breakthrough projects not because of bad culture but because of structure, and that the transition is a phase change of the kind physics describes. His central analogy is to water freezing, where a small change in temperature produces an abrupt change in behaviour, and he argues that organisations undergo the same kind of transition at a calculable size.

His mechanism is the competition between two incentives inside any organisation: the return to project work, which dominates in small teams, and the return to political rank-seeking, which dominates once the organisation is large enough that promotion outweighs project outcomes. He derives a rough formula for the transition point involving span of control, equity fraction, salary growth and management fit.

His prescription is separating what he calls artists and soldiers into distinct structures with equal status, protecting the loonshot group from the demands of the main business, and appointing what he calls a gardener who manages the transfer between them rather than choosing between them. He distinguishes P-type loonshots, which change the product, from S-type, which change the strategy or business model, and argues that organisations that survive one type frequently die of the other.

The historical cases include Vannevar Bush's wartime research organisation, Juan Trippe at Pan Am, Edwin Land at Polaroid, Akira Endo and statins, and the failures at Nokia and Pan Am. The physics framing is presented more as a source of intuition than as a demonstrated model, and the mathematics is illustrative rather than tested. The separation and gardener prescriptions are the transferable parts.

Physicist; co-founder and former CEO of Synta Pharmaceuticals; previously a consultant at McKinsey & Company

One well-regarded book that reframes innovation as a phase transition, but a single title and a niche readership outside the innovation literature.

Synta Pharmaceuticals, McKinsey & Company