Simulation of R&D investment strategies

A Douglas Bender, Edmund B Pyle, Wilfred J Westlake and Bryce Douglas

Omega, 1976, vol. 4, issue 1, 67-77

Abstract: Simulation has been applied to a descriptive model of the R&D process and its relationship to other components of a commercial system with the objective to: (1) consider the size of the R&D expenditure in terms of future profit growth; (2) estimate the rate of return on the R&D investment; (3) compare the benefits of investment strategies designed to improve profit growth and return on investment; and (4) assess the consequences of anticipated extra corporate environmental futures on the attractiveness of the investment in R&D. With the use of this econometric model a number of major issues may be addressed in terms of their effect on R&D profitability and return on investment. These include: (1) the size of investment in R&D; (2) the level of research productivity; (3) strategies for development of new products worldwide; (4) rising R&D costs and inflation; (5) the probability of technical success; (6) market potential; (7) profit margin; and (8) length of product exclusivity.

Date: 1976
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/0305-0483(76)90040-2
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:jomega:v:4:y:1976:i:1:p:67-77

Ordering information: This journal article can be ordered from
http://www.elsevier.com/wps/find/supportfaq.cws_home/regional
https://shop.elsevie ... _01_ooc_1&version=01

Access Statistics for this article

Omega is currently edited by B. Lev

More articles in Omega from Elsevier
Bibliographic data for series maintained by Catherine Liu ().