July 7, 2025

Inside-out innovation and the nervous system

Innovation begins within: A Nervous System-aware approach

In today’s rapidly evolving landscape, organisations are investing heavily in innovation—through digital transformation, agile methodologies, and strategic initiatives. Yet, many of these efforts falter not due to flawed ideas, but because the human systems underpinning them are overlooked.

At the heart of these human systems lies the nervous system.

Innovation isn’t just about what we build — it’s about the states we build it from.

Why traditional innovation falls short

Recent advances in cognitive neuroscience have illuminated the intricate processes underlying creativity. Studies reveal that creative thinking involves the interplay of spontaneous and controlled cognitive processes, underpinned by dynamic brain networks such as the default mode network and the executive control network . These networks facilitate the generation and evaluation of novel ideas, essential components of innovation.

Moreover, research indicates that psychological safety—a state where individuals feel safe to take interpersonal risks—is crucial for fostering innovation. Teams with high psychological safety are more likely to engage in creative tasks and share new ideas, leading to enhanced innovation performance.

Our capacity to hold complexity is directly shaped by the regulation of our nervous system.

The Nervous System: Innovation’s missing link

As complexity increases, traditional top-down leadership styles are proving insufficient. According to Harvard Business Publishing’s 2023 Global Leadership Development Study, effective leaders exhibit qualities such as self-awareness, empathy, and curiosity, which are vital for navigating uncertainty and driving innovation .

Furthermore, the concept of ambidextrous leadership—the ability to balance exploratory and exploitative activities—has gained prominence. Leaders who can flexibly switch between fostering innovation and ensuring efficient execution are better equipped to adapt to changing environments.

In today’s rapidly evolving landscape, organisations are investing heavily in innovation—through digital transformation, agile methodologies, and strategic initiatives. Yet, many of these efforts falter not due to flawed ideas, but because the human systems underpinning them are overlooked.

At the heart of these human systems lies the nervous system.


Innovation isn’t just about what we build — it’s about the states we build it from.

From reactivity to response-ability

Inside-Out Innovation posits that sustainable innovation stems from cultivating internal capacities.
This approach encompasses three core elements:

Regulation leads to imagination leads to integration

Regulation: Establishing a sense of safety and presence, enabling individuals to engage fully with their work.

…. to ….

Imagination: Encouraging creative thinking and openness to new possibilities.

… to…

Integration: collaboration and the synthesis of diverse perspectives to cocreate change.

 

By focusing on these internal dimensions, organisations can create environments conducive to innovation.

Innovation isn’t just about what we build — it’s about the states we build it from.

Inside-Out Innovation in practice

These strategies align with the understanding that innovation is not solely a cognitive process but is deeply intertwined with our physiological and emotional states. To foster Inside-Out Innovation, organisations can implement practices such as:

  • Embedding nervous system literacy into leadership development programs.

  • Creating team rituals that promote psychological safety and co-regulation.

  • Encouraging reflective practices to enhance self-awareness and adaptability.

Portrait photo of Jax Wechsler with green outdoors background

These strategies align with the understanding that innovation is not solely a cognitive process but is deeply intertwined with our physiological and emotional states.

How to begin: Leading with your state first

In an era of rapid change and complexity, organisations must recognise that true innovation arises from within. By prioritising the cultivation of internal capacities—regulation, imagination, and integration—they can build resilient, adaptive systems capable of navigating the challenges of the modern world.

Curious to explore your own nervous system states? 
Download The Autonomic Compass — a free self-awareness tool for leaders.

A new way forward

Want to bring inside-out innovation into your team or leadership journey?

I offer coaching, nervous system literacy and trauma-informed training for future-facing organisations.
Let’s talk.

Or leave a message below and we will get back to you soon.

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