Re: dry up for
"That" refers to the fact that "the big company develops formal procedures and routines for the new product or service that stifle creativity".
Originally Posted by unpakwon
"When the market dries up for that innovation" refers to the fact that these particular innovative goods or services may not continue to be in demand for ever. Perhaps another innovative company has brought out something which does the same job even better and/or cheaper. When no-one buys your product any more, then it is said that "the market has dried up" for your product.
I'm not a teacher of English, but I have spoken it for (almost) all of my life....