Another of my favorite fallacies is that innovation spending is correlated with innovation output. This is another example of weak inference and insufficient evidence. Thinking that you need to spend more to get more can lead managers to make the wrong assumptions about what it takes to deliver growth.
I have written about the responsibilities of the Chief Innovation Officer over the past couple of months in a series of ten posts on this site. In summary, the role of the Chief Innovation Officer is to drive innovation capabilities across functions and geographies to deliver better business results. In my opinion the Chief Innovation Officer must be a member of the corporate executive team, preferably reporting to the CEO.