DocumentCode :
1306295
Title :
How many R&D projects to develop?
Author :
Lieb, Eugene B.
Author_Institution :
Custom Decision Support Inc., Chadds Ford, PA, USA
Volume :
45
Issue :
1
fYear :
1998
fDate :
2/1/1998 12:00:00 AM
Firstpage :
73
Lastpage :
77
Abstract :
The eventual success of any early research project is uncertain. It has been generally recognized that commercial and applied research projects need to be screened prior to undertaking extensive development effort. But how many projects should be continued into development? This paper presents a model to determine an average optimal number of research projects to be developed. The research and development is viewed as a two-stage process, where the task of research is to reduce the uncertainty for eventual development. Research projects consist of both technical and business evaluation, including marketing research. The number of research projects undertaken should be a function of the cost effectiveness of the research effort and the ability of the organization to support the development effort. We have created an analytical model of research and development based on the concept that the function of research is to improve the likelihood of development success. Based on this model and within its limitations, we conclude that (1) an optimum fraction of projects that should be developed usually exists and (2) that optimum fraction is critically dependent on the relative average research project cost and effectiveness compared to development
Keywords :
project management; research and development management; R&D projects development; applied research projects; business evaluation; commercial research projects; marketing research; project portfolio; relative average research project cost; research and development; research project; technical evaluation; two-stage process; Analytical models; Business; Cost function; Mathematical programming; Portfolios; Profitability; Research and development; Research and development management; Resource management; Uncertainty;
fLanguage :
English
Journal_Title :
Engineering Management, IEEE Transactions on
Publisher :
ieee
ISSN :
0018-9391
Type :
jour
DOI :
10.1109/17.658663
Filename :
658663
Link To Document :
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