In the recent bestseller Where Do Good Ideas Come From? author Steven Johnson makes the point that cities breed more innovation than towns. The establishment of a larger community, he says, enables the cross-flow of ideas and breeds creativity. Similarly, it is interesting to note that in the FT Law 50, the annual index of the most innovative law firms in Europe, the top places have been dominated by the larger law firms.
In looking at patterns of innovation over the past five years, we see that law firms tend to only innovate in meaningful ways through two drivers: visionary leadership or necessity. The legal industry, despite its competitive nature, is not known for a tradition of constant improvement. However, with recent economic events and impending legislative change, most law firms, particularly those ranked 51-75, see that they have to improve their offerings and re-define their competitive positions – they have to innovate.
