Abstract Project Portfolio Management (PPM) has emerged as a central tool of governing
multi-project environments in modern organisations. The paper presents a case study of project portfolio
management at Philips Research, a research division of Royal Philips Electronics Inc., a multinational
electronics company. We examine the initial conditions and main motivation to implement PPM in the
company. Further, we study characteristics and specifics of managing a portfolio of innovation and
research projects in Philips Research. Last but not least, we elaborate on the prospects of PPM in the
company.