Developing breakthrough innovations and the new businesses based upon them requires fundamentally different management practices. A study identifies some potent ones. OVERVIEW: The process of managing breakthrough, or discontinuous, innovation differs dramatically from managing incremental changes in products and technologies. We have learned a lot about the latter, but know little about the former It seems obvious, though, that what is sound management practice for incremental innovation-where speed, cycle time, and quick cash recovery are primary objectives-might actually hamper the radical innovation s progress. The study reported here identified mechanisms and practices under management s control that can help to further the discontinuous innovation process. These include mechanisms for directing the technology-market arenas in which these projects occur, mechanisms for proactively stimulating discontinuous innovation, criteria for project evaluation and screening that differ from currently used criteria, mechanisms for protecting projects that operate in highly uncertain regimes, and the importance of recognizing the key role of multiple champions over time and at different organizational levels. Mark Rice is the associate dean of the Lally School of Management and Technology at Rensselaer Polytechnic Institute in Troy, New York. He holds a Ph.D. in management and degrees in mechanical engineering from RPI. He has played a leading role in the development of Rensselaer's Incubator Center. His publications include Growing New Ventures, Creating New Jobs: Principles and Practices of Successful Business Incubation (Quorum Books, 1995) as well as numerous conference proceedings papers. He was co-founder and president of Power Kinetics, Inc. E-mail: ricem@rpi.edu Gina Colarelli O'Connor is an assistant professor in the Lally School of Management and Technology at Rensselaer Polytechnic Institute. She earned her Ph.D. in marketing and corporate strategy at New York University, and has worked for McDonnell Douglas Corporation and Monsanto Chemical Company in marketing-related positions. Her current research efforts focus on how firms link advanced technology development to market opportunities. Her articles have been published in The Journal of Strategic Marketing, The European Journal of Marketing, Psychology and Marketing, The Journal of Advertising Research, The Journal of Advertising, and The Journal of Product Innovation Management. E-mail: oconn@rpi.edu Lois Peters is an associate professor at the Lally School. She holds a Ph.D. in biology and environmental medicine from New York University. Her work has focused on partnering and cooperation among and between multinational firms, entrepreneurial small firms and universities. Recent research interests involve the study of management of innovation and the internal R&D activities of multinational firms. From June 1992 through October 1992, Peters was a visiting professor at the Max-Planck-Institut fir Gessellschaftsforschung, contributing to their studies on technological innovation and learning their approaches to network analysis. E-mail: peterli@rpi.edu Joseph Morone is president of Bentley College in Waltham, Massachusetts. Prior to this, he was the dean of Rensselaer's Lally School, where he initiated an entirely new curriculum focused on the intersection of management and technology, and the study of radical innovation upon which this article is based. His publications on senior management's role in the strategic use of technology are numerous. He earned a Ph.D. from Yale University in political science. Prior to his academic career, he was a senior associate for the Keyworth Company, a consulting firm that specialized in technology management. He also spent seven years at GE's Corporate Research and Development Center, and one year at the White House Office of Science and Technology Policy. E-mail: jmorone@lnmta. …