Corporate "innovation labs" are basically $100 billion money pits that make projects four times more expensive and a year late.
SSRN · March 13, 2026 · 6174321
Why it matters
This audit reveals the 'Arbitrage of Ignorance,' where intermediaries monetize process complexity rather than outcomes. It found that simply buying infrastructure directly is 85% more efficient than 'training-first' programs, which often teach people how to use systems they don't even have access to yet.
From the abstract
<p>This audit identifies a systemic waste pattern in corporate and government innovation spending termed the "Arbitrage of Ignorance." In this model, intermediary organizations—including accelerators, innovation labs, and traditional consultancies—capture an estimated $50–100B annually by monetizing process complexity rather than delivering measurable outcomes. By analyzing 47 major initiatives across 12 sectors, this research quantifies the operational and financial chasm between "Curriculum" a