There are three key reasons why some companies are not innovative or inventive: 1. Company leaders lose focus on how to make innovation systematic and get distracted by trying to "win the race" rather than addressing real issues. 2. Management organizations that made companies successful in technological economies now interfere with attempts to be innovative in knowledge economies based on intellectual capital. 3. Lengthy processes and "stupid policies" discourage employee growth and create an innovation gap within companies. This gap is always changing as everyone remains busy competing rather than fixing underlying problems.