In spite of much evidence of its success, many
managers hesitate to establish a policy for
new product development. Their indecision
often arises from two reasons: they fear that a
defined strategy may discourage innovation
and they are uncertain how to formulate a
new product strategy. The author of this
article discredits the former notion and, in
reply to the latter, proposes the guidelines for
developing such a statement. As new products
are essential to the continued success of most
firms, the strategy must exist and must be
operant if the firm is to avoid wasted time,
effort, and money as well as employee confusion
and discouragement.