The capability to innovate and to carry innovation successfully down to markets will undoubtedly be a crucial determinant of the global competition among firms in the few upcoming years. There is growing awareness among business leaders that innovative activity is the main driver of economic growth as well as a potential factor in meeting global market challenges. But for innovation to flourish, companies need to understand the core of innovation and the role organizational factors play in the process of innovation. In this book, we examined organizational structure, forms of innovation and competencies and capabilities and innovation. Two case studies, Kraft Foods and Qualcomm, were presented to carry out our research. Through a review of relevant literature, a theoretical framework, upon which the research model, the survey and interview questions were based, was constructed. Interviews were conducted with eight corporate executives, while the survey was executed with 20 respondents from various departments of each firm. Interviews data was analyzed with qualitative method while the collected responses from survey were analyzed with statistical hypothesis testing method