Nineteen case studies of innovation failure indicate that if innovations are to fail, they are most likely to do so during their launch phase. Innovations fail for a variety of reasons, but three-fourths of the cases examined failed either because of insufficient demand in the marketplace or because the innovations failed to function well enough. Coincidently, though not surprisingly, more than three-fourths of the 19 failures can be traced to shortcomings in the new product development process. These results are preliminary and reflect analysis of only 19 cases of innovation failure. Refinement of these findings requires additional cases and inclusion of cases of innovation failure prior to the year 2000. In addition, this research will be used to inform future iterations of the ABS, which contains a module on innovation including questions on methods (activities) used by firms for innovation, barriers to innovation, and expectations of innovation.