The frequency of line extensions is often a better measure of a company’s desperation than of its innovativeness. Constant pressure for the next line extension reduces the resources available for significant new product development. Many companies find it hard to persuade their best managers to take the career risk involved in working on a big new product idea for two to three years. At the same time, some new product ideas that, if properly nurtured, could be launched as significant entries are hijacked by managers of existing brands and marketed sub-optimally as line extensions.