Analytical Effectiveness of Mathematical Models for R&D Project Selection

William E. Souder
Additional contact information
William E. Souder: University of Pittsburgh

Management Science, 1973, vol. 19, issue 8, 907-923

Abstract: Four mathematical programming models for R&D project selection and funding are developed, based on similar models and results in the literature. Project selection and funding decision planning data for thirty actual R&D projects are collected and the models are used with these data to ascertain which of the available projects to select and how much to spend on them. The portfolios prescribed by each model are compared with a prorata benchmark allocation, an ex post optimum allocation based on the success/fail project outcomes and the allocations actually used by management. The results indicate that these models may be effective decision aids when used at appropriate project life cycle periods, with the choice of the particular model form being influenced by the manager's objectives and viewpoints of the project selection problem.

Date: 1973
References: Add references at CitEc
Citations: View citations in EconPapers (6)

Downloads: (external link)
http://dx.doi.org/10.1287/mnsc.19.8.907 (application/pdf)

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:inm:ormnsc:v:19:y:1973:i:8:p:907-923

Access Statistics for this article

More articles in Management Science from INFORMS Contact information at EDIRC.
Bibliographic data for series maintained by Chris Asher ().