Collaborative construction of a futuristic cityscape, symbolizing strategic innovation project selection.

Innovation on a Budget: Smart Ways to Pick the Best Projects

Soraya Malik in Business & Economy December 2025 • 4 min read.

"Struggling to decide which ideas are worth investing in? Learn how smart choices and teamwork can lead to better innovation, even with limited funds."

Every company faces tough choices when it comes to innovation. With limited budgets, it's impossible to pursue every idea, so how do you pick the winners? Involving multiple decision-makers seems like a good idea, but how do you ensure everyone's input leads to the best results?

New research explores how organizations can improve their project selection process. By modeling different strategies, the study reveals which methods work best for combining collective insights and making smart investment decisions. The findings offer practical guidance for companies looking to maximize their innovation potential.

This article will break down the key insights from this research, highlighting how different approaches to project selection can impact your success. Whether you rely on expert opinions, group voting, or ranking systems, you'll discover how to make informed decisions and build a winning innovation portfolio.

Why Teamwork Beats Going It Alone: The Power of Combining Minds

Collaborative construction of a futuristic cityscape, symbolizing strategic innovation project selection.

When it comes to innovation, more minds are often better than one. The research consistently shows that involving multiple people in the decision-making process leads to better results than relying on a single individual. This is especially true when different team members bring unique expertise and perspectives to the table.

However, simply gathering opinions isn't enough. The key lies in how you combine those perspectives to make a final decision. Different aggregation methods can lead to drastically different outcomes, so it's crucial to choose the right approach for your organization.

Delegation: Assigning project evaluation to specific experts makes sense when you have confidence in their abilities and can match them to relevant projects.
Voting: While simple, voting can be less effective in situations where resources are limited and choices are complex.
Averaging: Combining scores or estimates can be a good way to balance different opinions, but it can also be influenced by extreme outliers.
Ranking: This method, which involves team members ranking projects in order of preference, often outperforms other approaches, especially when budgets are tight.

The dominance of ranking highlights the importance of relative prioritization. Rather than focusing on absolute scores or estimates, ranking forces decision-makers to consider the tradeoffs between different projects. This can lead to more effective resource allocation and a stronger overall innovation portfolio.

Finding the Right Fit for Your Organization

The optimal approach to project selection depends on your specific circumstances, including your budget, the expertise of your team, and the complexity of your innovation landscape. While ranking often emerges as a powerful strategy, it's essential to consider the unique needs and context of your organization. By understanding the strengths and weaknesses of different decision-making methods, you can create a process that maximizes your chances of success and drives meaningful innovation, even on a limited budget.

About this Article -

This article was crafted using a human-AI hybrid and collaborative approach. AI assisted our team with initial drafting, research insights, identifying key questions, and image generation. Our human editors guided topic selection, defined the angle, structured the content, ensured factual accuracy and relevance, refined the tone, and conducted thorough editing to deliver helpful, high-quality information.See our About page for more information.

This article is based on research published under:

DOI-LINK: 10.1287/orsc.2023.17357,

Title: Organizational Selection Of Innovation

Subject: econ.th cs.ma physics.soc-ph stat.ap

Authors: Lucas Böttcher, Ronald Klingebiel

Published: 16-05-2024

Everything You Need To Know

What are the key strategies for selecting innovation projects on a budget?

The article highlights several strategies for selecting innovation projects under budget constraints. These include leveraging expert opinions through 'Delegation', using 'Voting' mechanisms, employing 'Averaging' of scores, and utilizing 'Ranking' systems. The research emphasizes that understanding the strengths and weaknesses of these methods is crucial for maximizing innovation potential, especially when resources are limited. The specific method that yields best results depends on your organization, budget, and team.

Why is teamwork more effective than individual decision-making in innovation project selection?

Teamwork is emphasized because involving multiple people in the decision-making process leads to better results. This is due to the diverse expertise and perspectives team members bring. 'Delegation', 'Voting', 'Averaging', and 'Ranking' are some of the methods for combining these diverse opinions. While teamwork is more effective than a single individual's assessment, the choice of 'aggregation' method significantly impacts the outcome. Therefore, the best results are achieved when a decision-making process is optimized to combine these collective insights.

What is the importance of 'Ranking' in project selection, and how does it differ from 'Voting' and 'Averaging'?

'Ranking' is presented as a particularly powerful strategy, especially with budget constraints. 'Ranking' forces decision-makers to prioritize projects relative to each other. This contrasts with 'Voting', which can be less effective with limited resources and complex choices. 'Averaging' of scores balances different opinions but can be skewed by extreme outliers. The 'Ranking' method prioritizes relative importance, which enhances resource allocation for a stronger innovation portfolio.

What are the different aggregation methods mentioned, and how do they work?

The article discusses several 'aggregation' methods: 'Delegation' involves assigning project evaluation to specific experts, 'Voting' is a simple approach where team members vote, 'Averaging' combines individual scores or estimates to balance opinions, and 'Ranking' requires team members to order projects by preference. Each method has strengths and weaknesses, and the optimal choice depends on the organization's specific circumstances, budget, and team expertise. The research stresses the importance of selecting the right method to make informed decisions and maximize innovation potential.

How can an organization determine the best approach for innovation project selection given its unique circumstances?

The optimal approach to project selection hinges on the organization's specific context. Factors to consider include budget constraints, the expertise available within the team, and the overall complexity of the innovation landscape. While 'Ranking' frequently yields strong results, organizations must evaluate the strengths and weaknesses of 'Delegation', 'Voting', and 'Averaging'. Understanding these methods allows companies to tailor a project selection process to their unique needs, which increases the likelihood of success and drives meaningful innovation, even when resources are limited.