Evaluating Novelty: The Role of Panels in the Selection of R&D Projects

Building on a unique, multi-source, and multi-method study of R&D projects in a leading professional services firm, we develop the argument that organizations are more likely to fund projects with intermediate levels of novelty. That is, some project novelty increases the share of requested funds received, but too much novelty is difficult to appreciate and is selected against. While prior research has considered the characteristics of the...