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by Francis Bidault and Alessio Castello in MIT Sloan Management Review on May 10, 2010

In this article Francis Bidault and Alessio Castello  discuss the concept of trust’s relationship with innovation when companies cooperate.  In Francis and Alessio’s study a bell curve became apparent when trust was compared with innovativeness. A lack of trust results in a lack of innovation, but too much trust also leads to a lack of innovation.  The key is to have just the right amount of trust.  The ideal amount of trust comes when each side believes the other is going to do its part, but also challenges the other’s ideas.