Having a defined innovation strategy and a formal process are generally found to be associated with superior NPD performance. Innovation is at the top of the business agenda in Ireland but despite its importance, little is known about how Irish organisations manage for innovation; whether they have a strategy or whether formal management processes are used, and with what effect. This study finds that two-thirds of innovation active firms do not have an innovation strategy with even less operating any formal innovation process. Having a more formal innovation process is associated with higher innovation returns; more radical or novel innovations and better exploitation of innovations at the diffusion stage of the innovation value chain. Structuring the innovation process has considerable advantages for small firms; in idea generation where they are more likely to develop ‘new to the market’ ideas; in conversion where they take a more risk taking attitude to investing in radical ideas and in diffusion, where they manage the launch process better by maximising sales and distribution channels and by rolling out new products faster.