The electricity sector is in the midst of a structural change driven by new technologies. In Brazil, the electricity sector regulation has mechanisms to foster innovation, including investments in R&D. Recently, the regulatory agency and the industry have been calling for approaches to increase the rate at which R&D departments generate solutions that end up being adopted. As a result, novel approaches to R&D project management have entered the agenda. In this context, the objective of this paper is to characterise Agile Product Development and its application in a highly regulated sector. The paper presents a systematic literature review with the debates about Agile and new product development. Then, a case study exploring an early adoption of the Agile approach in R&D project management in the Brazilian electricity sector is presented. Results include the identification of the Agile features most frequently mentioned in the literature. Moreover, the case study explores the Agile features that were more easily absorbed in early adoption, such as iterative patterns, and discusses implementation challenges in team structure, feedback loops, and communication.

Goal:The paper aims to increase the understanding of the results and challenges that arise when running R&D projects based on multiple partners and the integration of Design Thinking, Lean Startup, and Agile concepts.Design / Methodology / Approach: We followed a case study approach in the electricity sector. Two project cases were studied, using triangulated data from interviews, internal documents, and nonparticipant observations. Results:The results of the Design Thinking, Lean Startup, and Agile concepts application in R&D projects show improvements in knowledge absorption, solution improvement through collaborative insights between partners, and identification of short-term opportunities. Some challenges, however, were identified, such as noisy integration, the role of the project manager requiring a sophisticated skillset, and complicated decision-making processes. Limitations of the investigation:The conclusions have the inherent limitations of a case study conducted in one industrial sector and two projects led by one company. Practical implications:The evolving competitive landscape demands more effective pathways to foster innovation. Recent approaches to innovation have challenged R&D practices. This study discusses a new way of addressing R&D efforts with multiple partners by integrating Design Thinking, Lean Startup, and Agile concepts.Originality / Value: The combined and coherent application of concepts derived from Design Thinking, Lean Startup, and Agile in R&D practices in the electricity sector is new. The high volume of R&D activity in the electricity sector makes this in-depth analysis both relevant and valuable.