How hierarchies kill creativity

David Burkus mentions a common view about the behaviour of people in hierarchies and the role of ideas

Creative ideas that come from the middle or lower levels of a hierarchy have to work their way up through a series of managers, each with the power to veto but each lacking the power to implement. Supervisors often reject innovative ideas because the individuals who developed theses ideas understand the novelty and applicability of them better than supervisors. As an idea moves through the different levels, the likelihood of rejection increases, since those managers are further from the domain the idea applies to and less likely to understand its true value in that domain

He discusses a company where they had an internal stock market and invested in ideas

In full