Resource deployment for radical projects within established firms

There is increasing evidence on the importance of radical innovation to long-term firm success in the competitive marketplace today. Although this recognition has permeated many established companies, there is uncertainty about how to accomplish such innovation. This work is based on two case studies of radical innovation projects within established firms. We found that a radical innovation process exist out of three phases: a technical development phase, a market development phase and a business development phase. In case the strategy and the targeted market of the radical innovation project is in line with that of the parent company, both entities can learn a lot from each other. We believe that it is better to organize the technical development phase and business development phase internally, but to organize the market development phase externally; without the control of the parent company.