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The Stage-Gate process is a tool used by innovation managers to rationalize resource allocation the innovation process by breaking the innovation process into different stages, and determining progress and prospects at gates using pre-determined criteria. This study determines the performance impact of investing financial resources relatively heavily in the front-end or early stages of new product development (NPD) projects. Data was collected for NPD projects for one of the largest consumer electronics firms in the world. Investing relative more resources in front-end activities positively affects performance. The degree of newness of an NPD project positively moderates this relationship.