Risk has always been intrinsic in innovation but increased competition, quickly changing customer expectations and technologies have increased complexity and uncertainty about the outcomes. Various studies have identified a low success rate in major innovations. More explicit risk management might help in achieving success in innovation projects. However, while risk management could be valuable too much, or inappropriate risk management might stifle innovation. This paper describes a framework which combines the generic innovation process with risk management. It was used to analyse the current attitudes to managing risk in a series of companies, demonstrating that diverse industries have many common needs. The analysis suggested that different risk management tools are appropriate at different stages of the innovation process. The case study organisations had few formal mechanisms for learning from their previous innovation projects: a common challenge is the need to better exploit experience, increase knowledge and hence reduce risk.

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