Using a "budget pool" to reduce the cost of innovation

To reduce the cost of innovation, companies can use an innovation budget pool that allows projects to access a proportion of the total allocated budget at each stage of their journey. Innovation projects usually cannot be planned in the same manner as traditional projects, so a budget pool allows for more flexibility and reduces bureaucratic red tape. In the innovation pipeline, projects need only validate the existence of the problem and product-market fit to access a portion of the budget pool. As projects progress through stages, they will require more resources, but because some projects will be killed at earlier stages, there will be proportionally more budget pool remaining for the surviving validated projects.