This study explores whether the average technological advancement of a firm’s new product development (NPD) initiatives has an impact on the firm’s NPD launch rate. A key premise is that success in developing product portfolios that are advanced beyond current market offerings is a function of the firm’s knowledge base. The study uses a dataset of drug development activity for 90 pharmaceutical companies over the period 1995 to 2006. A three-way interaction indicates that firms developing technologically advanced portfolios exhibit a higher launch rate when those portfolios combine either high breadth and low concentration across knowledge categories or high concentration and low breadth.