Chief Innovation Officer: Career Outlook

Last Updated November 18, 2019

Innovation is a core strategy goal for many organizations. However, without a clear leader at the helm to ensure innovation is supported across the organization, innovation can flounder in the real business environment. In fact, more than half (54%) of executives in a PWC Innovation Benchmarking survey reported that they struggle to align the strategy of innovation with the overall business strategy, according to the report.

In order to see innovation from inception to implementation, savvy organizations are adding the role of “Chief Innovation Officer,” or CIO, to their C-level leadership. This influential executive can champion innovation at all levels of the organization, creating a culture of innovation by ensuring the company’s time, resources and focus keep innovation at the forefront.

Job Description

CIOs play a critical role in driving change and new growth, cultivating innovation capabilities within the organization, and promoting the value and influence innovation can offer. This requires a focus on both the culture at the company and the strategy that drives innovation.

Depending on an organization’s industry category, product or service, the needs and focus for innovation can vary. In the PWC Innovation Benchmarking survey, 54% of executives reported their key innovation focus areas as technology and business model transformation. With these needs in mind, in many organizations, the chief innovation officer is one who is steeped in business and people management, can effectively lead technological and process transformation, initiate strategy change, and help organizations  respond to disruptions by constantly innovating.    

Role and Responsibilities

Driving innovation within an organization is a broad task. The day-to-day responsibilities of the chief innovation officer can be equally broad and may include:

• Developing an innovation strategy and garnering support from business stakeholders, such as fellow C-level executives, employees, customers and business partners
• Creating an innovation portfolio and roadmap to drive growth and spur investment
• Overseeing new innovations as they are introduced to the marketplace
• Ensuring innovation provides value to customers and cultivate long-term relationships with those customers
• Driving action on innovation plans in collaboration with relevant team members
• Building a strong network of connections who can support collaboration and provide valuable feedback innovation processes
• Establishing clear processes for generating ideas, creating prototypes and producing them
• Evaluating and balancing risk/reward for innovation and organizational objectives
• Supporting staff development
• Championing change management
• Assessing competition and maintaining overall market awareness

Like most C-level executives, chief innovation officers should expect to work a significant number of hours, including on weekends and in the evenings.

Career Outlook and Salary

Chief innovation officers, like many C-level executives, can anticipate a six-figure salary range with compensation packages that may also include stock options, performance bonuses, and other perks like expense allowances, company cars and executive memberships. 

A LinkedIn salary survey of members with the role of chief information officer found an average salary of $196,000 with total compensation packages averaging $212,000.* With the median annual wage of all chief executive positions roughly $189,600 in 2018, according to the Bureau of Labor Statistics,¹ the chief innovation officer role has the potential to be one of the higher paid C-level roles.*

Overall, the Bureau of Labor Statistics projects C-level executive jobs to grow at an average rate, noting that competition is generally quite stiff for these prestigious roles. However, the need for innovation in the current disrupted business climate indicates that the growth rate for chief innovation officer positions may buck the “average” trend.

Author Soren Kaplan, who has spent the last 25 years studying innovation, writes in Inc. that a growing number of companies have hired an executive to lead innovation, including big players like Marriott, CSAA Insurance Group and the City of San Francisco. With more companies adopting an “innovate or die” mindset, it’s likely the role of chief innovation officer will play a pivotal role for growth-minded organizations. 

Education and Training

Chief innovation officers can gain experience as project managers or business leaders first, ensuring they enter the role with experience in building innovative processes or launching innovative products from scratch. Competition for these limited, but highly sought-after, roles is fierce, and professionals can differentiate themselves by coupling their technical knowledge and business experience with an advanced degree that goes beyond business management.  

MSU’s Master of Science in Management, Strategy and Leadership can equip aspiring innovation officers and leaders to develop innovative strategies, visionary leadership and agility in organizational management. With instruction in strategic thinking and management theory grounded in real-world applications, the program helps to develop an individual’s leadership style and cultivate innovative approaches to organizational solutions.

Ready to start innovating in your organization and in your career?

¹Bureau of Labor Statistics, U.S. Department of Labor, Occupational Outlook Handbook, Top Executives. https://www.bls.gov/ooh/management/top-executives.htm#tab-5 (visited Oct. 23, 2019).

*National long-term projections may not reflect local and/or short-term economic or job conditions and do not guarantee actual job growth. Information provided is not intended to represent a complete list of hiring companies or job titles, and degree program options do not guarantee career or salary outcomes. Students should conduct independent research on specific employment information.