Project failures are common in R&D-intensive organizations, and finding ways to deal effectively with them is a critical managerial task. While we know that experiencing the failure of an own R&D project can decrease the commitment and contentment of the involved employees, we do not know how witnessing the failed projects of others in the same organization might demotivate the R&D employees not involved in those projects. Drawing on job demands-resources theory, we develop and test a model of when and with what consequences a perceived failure context constitutes a job demand that impairs the work engagement of R&D employees. Using data from 437 R&D employees of 49 innovative organizations, we show that managerial responsibility represents a vital job resource that buffers the negative effect of a perceived failure context on work engagement and, via work engagement, on job satisfaction. We discuss implications for practice and the literature on project failure, work engagement, and managerial responsibilities in organizational R&D contexts.