Boosting Radical Innovation Using Ambidextrous Portfolio Management

Managing an innovation portfolio is crucial for firms looking to foster radical innovation. Radical innovation, however, creates challenges for traditional portfolio management systems. When companies do not adequately distinguish between incremental and radical innovation when designing their management systems, portfolio management decision-making processes will tend to favor incremental innovation. Radical innovation requires a broader, multilevel organizational approach. We propose a multilevel framework for innovation portfolios that considers elements at the individual, project, organizational, and strategic levels. We suggest guidelines for ambidextrous portfolio management to ensure a strong separation between incremental and radical innovation projects and to support a more fruitful management environment for radical innovation.