Cost effectiveness in R&D organizational resource allocation

A method for use in allocating resources to a multi-laboratory, multitask research and exploratory program is described. The basic elements of the underlying model are 1) tasks, projects, and laboratories, 2) contributing sciences and technologies (S and T), 3) criticality of such fields to achieving organizational objectives, 4) relative values of objectives, and 5) costs of performing tasks. Structural models are developed for interrelating tasks, S and T fields, and objectives. A cost-effectiveness model is developed for use in allocating resources to tasks. Research and exploratory development effectiveness is measured in terms of the value of task contribution to organizational objectives. Results of this study tested by experimentally determined inputs include 1) cost-effectiveness relationships for tasks, projects, laboratories, and S and T fields, 2) log-normal distributions for both project cost and effectiveness, and 3) a systematic procedure for allocating resources to R&D activities.