Companies must simultaneously focus on cost and time efficient product development as well as enabling radical and incremental innovation for long-term survival. The companies in the study from high-tech industries face the demands on innovation within their software development projects.

Software development projects are often characterised by a rational approach with focus on short-term results, careful planning and a step-by­ step process. Critical questions include what kind of innovation and behaviour this environment fosters on both organisational and individual level.

The overall goal of this thesis is to discuss consequences on the capabilities for innovation when more work is performed in projects.

The chosen empirical indicators of innovation, customer interaction and organising for innovation, provide a picture of projects primarily supporting incremental not radical innovation. Additionally, interaction with an external customer seems to bring clarity to priorities at the same time as an individual focus provides clarity for responsibilities.