Prompted by contextual shifts that are reshaping the business environment, managers are increasingly seeking new ways of thinking about strategy. However, a significant gap has arisen between theory and practice in the realm of management innovation, according to our recent survey of experts in the field as well as observations from practice. As a result, several frictions have developed in the “learning cycle” by which new needs are surfaced, solutions are developed and tested in practice, and ideas are refined and amplified. The gap between theory and practice is not inevitable, but closing it will require overcoming misperceptions and changing the contexts in which innovators operate. We suggest several actions that individuals and institutions can take to break apparent trade-offs and improve the practice of management innovation.