How to Create an Innovation Budget: The Grail of Wisdom Is Dialog

Assembling an R&D budget is a challenging endeavor. It requires involving multiple stakeholders and considering many input factors. There is no one-size-fits-all approach with practitioners applying various approaches and methods to create the innovation budget during the budgeting process. In this article, we introduce and discuss five state-of-the-art approaches to derive a reasonable innovation budget with a strong practical lens. In reviewing them, we provide rich academic insights and offer practical guidance based on the years of experience in innovation management and corporate strategy.