Title: The R&D funding decision: the need for a systemic approach
Authors: Mike Towler, Jonathan D. Moizer
Addresses: Plymouth Business School, University of Plymouth, Drake Circus, Plymouth, PL4 8AA, UK. ' Plymouth Business School, University of Plymouth, Drake Circus, Plymouth, PL4 8AA, UK
Abstract: There is an abundance of techniques for selecting between potential R&D projects. A brief taxonomy of these indicates the importance of the role of both dynamics and learning in such evaluations. This may be an implicit indication that a systemic feature to the funding decision is required. System Dynamics (SD) then seems to be an appropriate method to explore resource allocation within R&D. Insight models using system dynamics further highlight the systemic nature of resource allocation decisions and a simple model confirms the importance of soft factors in such decisions. Hence we argue the need to develop and use a systemic approach to R&D resource allocation decisions.
Keywords: system dynamics; research and development; resource allocation; R&D intensity; R&D project valuation; real options; R&D funding; project selection; learning.
International Journal of Management and Decision Making, 2008 Vol.9 No.4, pp.402 - 414
Published online: 09 Jul 2008 *Full-text access for editors Access for subscribers Purchase this article Comment on this article