The management of innovation in project-based firms

How relevant are traditional innovation ideas for project-based firms? This paper asks if project-based firms provide a context supportive of innovation or indeed if they view it as useful. Based on research in firms from a variety of sectors, including telecommunications, information systems, computers, financial services and engineering, procurement and construction, the paper reveals that the very project control systems around which the firms operate serve to stifle innovation. Project-based firms-regardless of sector-prioritise efficient management of projects, tolerating the use of slack resources only when absolutely necessary. Finally innovation is not seen as universally useful, but primarily as costly and dangerous. It concludes that the space at which 'innovation' and 'projects' comes together is still dominated by ideas on how to correctly manage projects, rather than how to effectively manage innovation. Innovation of ideas on managing innovation projects may be merited. (C) 2002 Elsevier Science Ltd. All rights reserved.