From John Stark

Organization not conducive to innovation

Interdepartmental borders prevent communication of innovative ideas
Incorrect measures hinder the advance of innovative products and services
No processes defined for innovation
Not listening to customers
Not knowing what customers really want to buy
No recognition of the need for a creativity process
Inappropriate incentives
Incompatible innovations producing confusion rather than growth
Inability to handle uncertainties about risks, results and timing of innovation
Lack of information on markets and technologies