In an increasingly dynamic competitive environment, innovation and organisational renewal are essential for organisational survival. An organisation's project portfolio management (PPM) practices are responsible for the effective deployment of the innovation strategy. PPM practices provide a holistic perspective for ongoing decision-making to maintain the most effective combination of projects for new product and service development. This paper outlines current research into the PPM practices used for new product development projects in a diverse range of industries. Results from a questionnaire-based survey are reinforced by in-depth case studies of successful innovators. The case studies also provide a deeper understanding of the use and ongoing evolution of PPM in practice. PPM practices are shown to be a dynamic capability that, in combination with the underlying resource base, enables organisations to achieve competitive advantage. The findings also indicate that successful innovators possess valuable organizational learning capabilities that enable dynamic capabilities like PPM to be adjusted to respond to changes in the environment.