Program Overview
In an era where innovation defines market leadership, the challenge lies not in generating ideas but in financing and managing them effectively. This program enables leaders to build and govern high-impact innovation portfolios that balance risk, reward, and strategic alignment. Participants learn how to value R&D and technology projects using real options, scenario modeling, and probability-weighted financial frameworks. Through global case studies from Pfizer, Bosch, Siemens, and Tata Group, the course demonstrates how disciplined portfolio management and blended financing models can drive sustainable innovation and capital efficiency. By integrating strategy, finance, and R&D governance, participants gain the tools to make data-driven investment decisions that transform innovation into measurable enterprise growth.
Features
- Apply financial tools like real options and probability-weighted NPV to evaluate R&D and technology projects
- Design and manage balanced innovation portfolios for risk diversification and strategic fit
- Explore internal and external funding models for innovation and IP-based investments
- Build KPI-driven dashboards for monitoring portfolio performance and capital productivity
Target audiences
- Finance Controllers
- R&D Leaders
- Innovation Managers
- Corporate Strategy Professionals
- Project Portfolio Managers
- Business CFOs
Curriculum
- 6 Sections
- 35 Lessons
- 1 Day
- The Economics of Innovation – Balancing Risk and Reward6
- 1.1Innovation economics and the uncertainty premium
- 1.2Staged investment logic and portfolio diversification
- 1.3Horizon 1-2-3 innovation portfolio structure
- 1.4Real Options Theory and stage-gate funding models
- 1.5Linking innovation performance to shareholder value
- 1.6Diagnostics Drill – Classify organization’s R&D pipeline into core, adjacent, and transformational innovation categories
- Valuation of R&D and Technology Projects7
- 2.1DCF limitations and risk-adjusted valuation for R&D
- 2.2Real Options valuation (ROV) and decision-tree analysis
- 2.3Scenario modeling and probability-weighted NPV
- 2.4Cost of delay (CoD) and innovation ROI metrics
- 2.5Technology readiness levels (TRLs) and investment decision checkpoints
- 2.6Case Study: Pharma R&D portfolio valuation at Pfizer; Automotive innovation ROI modeling at Bosch
- 2.7Exercise: Perform a simplified “options-based” valuation for an innovation project with multiple future scenarios
- Portfolio Management & Capital Allocation Frameworks8
- 3.1Portfolio mix optimization (risk, ROI, and strategic fit)
- 3.2Balancing incremental vs. breakthrough R&D
- 3.3Capital allocation frameworks for innovation portfolios
- 3.4KPI dashboard design – innovation yield, success rates, and time-to-value
- 3.5Governance and stage-gate mechanisms for funding control
- 3.63M’s 15% rule for innovation freedom balanced with portfolio discipline
- 3.7Example: Siemens & GE – dynamic rebalancing between core R&D and digital initiatives
- 3.8Exercise: Create a Portfolio Heatmap visualizing their innovation mix, financial exposure, and strategic alignment
- Financing Innovation – Internal & External Mechanisms7
- 4.1Internal funding: R&D reserves, innovation funds, cross-subsidization
- 4.2External financing: venture arms, joint ventures, public-private partnerships (PPP)
- 4.3Government incentives and R&D tax credits
- 4.4ESG-linked innovation financing
- 4.5IP-backed lending, licensing, and monetization
- 4.6Case Study: Tata Group’s “Innovation Fund” and Siemens Energy’s R&D co-financing ecosystem
- 4.7Group exercise – Design a blended financing model for a hypothetical cross-functional technology innovation
- Managing Risk, Uncertainty & Failure in Innovation Portfolios5
- 5.1Innovation risk matrix – technical, market, and financial risk
- 5.2Post-failure learning ROI and sunk cost bias mitigation
- 5.3Governance mechanisms – portfolio steering committees, kill-rate analysis
- 5.4Linking R&D governance with corporate risk frameworks
- 5.5Portfolio Shock Drill – Respond to a simulated R&D budget cut by reprioritizing projects using portfolio metrics.
- Building the Innovation Portfolio Dashboard & Roadmap2
Instructor
