What Is the Stage-Gate Process in Innovation?
The Stage-Gate Process is one of the most widely used frameworks for managing innovation. Developed by Robert Cooper in the 1980s, it was designed to help companies bring new products and services to market while minimizing risk.
The model breaks innovation into a series of stages separated by “gates.” At each gate, decision-makers review progress, assess risks, and determine whether the project should move forward, pivot, or stop.
A typical Stage-Gate process includes the following steps:
- Idea Creation
- Testing
- Evaluation
- Development
- Commercialization
In other words, if the innovation pipeline is the set of activities that transform ideas into products, the Stage-Gate process is the blueprint for managing that pipeline.
Why the Stage-Gate Process Can Slow Down Innovation
Stage-Gate is still used widely in industries like CPG, manufacturing, and pharmaceuticals. But while it brings structure and control, it also has drawbacks.
Here are three common pitfalls:
1. It Can Be Time-Consuming
Every stage requires testing, stakeholder reviews, and formal approval. While this helps reduce risk, it also creates delays. In industries where consumer preferences shift quickly (or where disruptive technology can change markets overnight) long timelines can mean missed opportunities.
2. It Can Become Bureaucratic
Because multiple stakeholders must approve progress at each gate, the process often slows down due to conflicting opinions, availability issues, or changes in organizational priorities. This bureaucracy can cause frustration and discourage teams from pursuing bold ideas.
3. It Treats Innovation as a Linear Path
Innovation isn’t a straight path. Teams often loop back to earlier ideas, jump ahead to test assumptions, or respond to new market signals. For example, if a quick-serve restaurant team signs off on a set of menu items but later sees a new flavor trend emerge, the rigid Stage-Gate structure may make it difficult (and costly) to adapt.
In practice, this means that some potentially breakthrough ideas may be ignored or postponed simply because they don’t fit neatly into the process.
How to Make Stage-Gate More Agile
The agile innovation approach, borrowed from software development, offers a way to overcome many of Stage-Gate’s weaknesses. Agile is based on releasing a minimum viable product (MVP) early, gathering real consumer feedback, and iterating quickly.
Here’s how agile principles can complement Stage-Gate:
1. Test Small Elements Early
Instead of waiting until later stages, agile teams test components of the product—like flavors, packaging, or messaging—individually and iteratively. This speeds up learning and reduces the cost of late-stage pivots.
For example, if your innovation project is to develop a new protein bar, each team can take little elements and explore them how they want. One team would experiment with flavors, another with the packaging, and another with the prices or positioning. They are encouraged to repeat their tests as many times as they need and play with different positionings, names, visuals, etc.
2. Adapt Quickly to Market Changes
Agile embraces iteration. When new trends or consumer insights appear, teams can incorporate them into product development without derailing the entire project. This flexibility helps ensure that final products are relevant and competitive.
3. Blend Stage-Gate With Agile Experiments
Don’t get confused; the stage-gate process isn’t all that bad – many big companies still use it a lot. But we think it could be zhuzhed up if it takes some inspiration from the agile process. For example, teams can run agile-style experiments during early development, then bring the strongest ideas into a formal Stage-Gate review.
This hybrid approach keeps the governance benefits of Stage-Gate while allowing for the speed and adaptability of agile.
Key Takeaway
The Stage-Gate Process was designed to reduce risk in innovation—but in today’s fast-changing markets, it can slow teams down if applied rigidly. By blending Stage-Gate with agile practices, companies can keep the benefits of structure while creating space for iteration, creativity, and speed.
If you’re looking for a next step, check out our guide to the 3 pillars of agile research and see how agile methods can strengthen your innovation process.
FAQs About the Stage-Gate Process
Is the Stage-Gate Process still relevant today?
Yes. Many industries still use it as a proven way to manage risk. However, most companies now adapt it by adding agile practices.
What industries use Stage-Gate the most?
It’s common in consumer packaged goods (CPG), manufacturing, pharmaceuticals, and other sectors where risk management and compliance are critical.
What’s the difference between Stage-Gate and agile innovation?
Stage-Gate is structured, linear, and risk-focused. Agile is iterative, fast-moving, and consumer-focused. A hybrid approach often delivers the best results.
About the Author
This article was written in collaboration with Michael Edwards, co-founder of Dig Insights. With more than 20 years of experience on both the client and supplier side, Michael brings a unique perspective on innovation research. He has led international quantitative and qualitative studies for global brands like Nestlé, Tyson, Coca-Cola, McDonald’s, P&G, Mars, Kraft, and MillerCoors.