By sheer coincidence, Falkayn posted a short article on the same topic today. He also linked to a ZDNET interview with Lloyd Taylor, VP of Technical Operations at LinkedIn. Here is a brief excerpt from the interview:
Dan Farber: Now, it looks like you have spent an entire career innovating, how do you create that culture of innovation in these different places that you go, how do you inspire people to kind of break all the rules?
Lloyd Taylor: The culture needs to reward failure. That is the answer.