it's the paradox which understanding that, will let you win the competition. Your rivals may have better position in the market or more funds etc, but you may overtake them anytime, with an effective innovation.
And innovation takes testing possibilities.
Testing has cost. sometimes it will consume a lot of time and money, on human and financial resources. so your employees may hesitate to risk for many untested solutions.
A leader should give and spread courage in his/her employees to be innovative and test new things. obviously not every solution worth to experience, but without testing new ways, you won't be able to make great competency advantages for your firm.
So the trade off is serious.