New products are a source of firms' competitive advantage. Research on R&D investments, processes and performance has majorly been at the level of analysis of organizations. In this research, we theorize and build theoretical arguments on managerial cognition in R&D projects and impact on performance within firms at an individual level entrepreneurial decision-making and resource utilization processes. We bridge behavioral-decision with cognitive perspective in building propositions on R&D processes. We examine corporate R&D managers, under resource constraints and high uncertainty, apply cognitive processes to take decisions and how it affects performance. We argue that cognitive processes are moderated by political skills of R&D manager and how it affects performance. This research also builds our understanding of managerial cognition under uncertainty within large organizations.