Step by step to innovation success?

This year I had the opportunity to attend the Lindau Nobel Laureate Meeting in Economic Sciences. Afterwards, I contributed a short excerpt about my ongoing research on innovation management and resource allocation to the Lindau blog, which I like to reblog here. The corresponding paper appeared as a ZEW discussion paper.

Being an innovative company is easier said (or included in a mission statement) than done. Managers of innovative companies have to spend large R&D budgets on projects with highly uncertain outcomes. In high-tech industries such as automobiles, biotech and pharma, R&D intensities of more than 15% of annual sales are not uncommon (EU R&D Scoreboard, 2013). How to invest these funds in the most efficient manner, that is, maximising the success rate of the conducted innovation projects, is of great interest to practitioners and academics alike. Continue reading Step by step to innovation success?