The changing face of research anddevelopment in the public sector

This paper examines the changes that have occurred in the management and scale of R & D, in the contextof the'gas industry's experience. As a resultof the discovery o f North Sea gas and new and expanding operations, R & D has become larger, more central, and thus more integrated into and accountable to the organization as a whole. This has resulted in greater centralization and planning administered according to the ‘sponsorship’ principle. These changes have highlighted the problems of R & D choice and the comparison of commercial and non-commercial objectives in a public sector industry. The unique constraints under which nationalized industries operate and their commitment to the ‘public interest’ as well as to commercial goals, are discussed. These bear upon the way in which R & D decisions not amenable to cost/benefit analysis (such as the balance between long and short term work) are made. It is emphasized that these decisions are made by the industry as a whole and that R & D must thus be seen to be complying with industry objectives. The example of British Gas R & D Planning is used to show how ‘sponsorship’ operates and its values for R & D and the restof the industry. Comparison with other public sector industries indicates that there is no one great system for R & D and that its administration is a function of the history, technological characteristics, and present situation of the industry. These imply different procedures appropriate for the innovation process within the Industry. The role of British Gas within a national energy policy is discussed. The separation of the fuel industries affects the assumptions on which R & D plans are made and thus the degree of uncertainty inherent in all R & D planning. This raises interest- ing questions about the degree of flexibility possible in defining each industry's own objectives.     

A study of the diffusion of management concepts and techniques amongst R & D managers

The management of R & D has been the focus of a great deal of research and writing during the past decade. It is, however, by no means certain that these have produced a significant effect amongst R & D decision makers. This paper describes a study of the extent to which R & D managers are aware of management concepts and techniques. The subjects were 57 senior R & D managers from British and Continental organizations who attended courses at the Management Centre, University of Bradford in 1974/5. The study was conducted by means of a questionnaire and a 100 question forced choice Quiz. The paper suggests that knowledge of modern management thinking has, to date, made only a limited penetration into R&D.     

Equitable payment in the R & D function

This paper discusses the problems associated with constructing equitable salary structures for Senior R & D employees. The use of job evaluation and performance appraisal are both considered. It is suggested that the decision band method of job evaluation is particularly useful in this context and a case study of its application within the R & D division of a large manufacturing firm is presented. Job grading and salary structuring in terms of decision-making responsibility are demonstrated. It is argued that the decision band approach assists rational administration of R & D in a number of ways including analysis and, perhaps, restructuring of the function. Methods of rewarding individual performance and measuring career development within R & D are also discussed in terms of the decision band concept.     

Research on the interface factor in the development and utilization of new technology

The interface factor in the development and utilization of new technology is analyzed with questionnaire surveys. The interface factor is found to determine R&D performance in a study of large manufacturing companies in the United States and in a study of computer utilization performance in commercial banks in the United States. A comparison of the interface factor in the functioning of R & D in the United States and Japan suggests that interface problems may be less serious in Japan. Company experience is reported which indicates that the interface function can be controlled by management policies, procedures and practices. The need for greater attention to the interface factor by executives and by researchers on R & D management is a conclusion which follows from the findings presented in this paper.     

Coordination of multinational R & D: A Swedish case study

The need to coordinate multinational R & D increases in many corporations which want to take advantages of scale, synergy and multinationality on a world-wide basis. The Swedish engineering corporation SKF has tackled this problem as an early internationalized but lately diversified corporation working in mature technologies and markets. Substantial coordination has been achieved through a heavy resource commitment in a foreign corporate R & D lab, and a subsequent build-up of a rather elaborate system for R & D management throughout the corporation. The structure and processes of the system are described, together with experiences of coordinating effects, and a project case is given. The chosen mode of coordination is finally compared with situations in other industries.     

The learning curve, R & D management, and marketing strategies for new products

This paper represents a review of the learning phenomenon which is useful in evaluating the potential of new industrial products. The learning curve in quantitative form provides a means for forecasting costs and prices in many industrial situations. While there are many metho-dological problems to be solved in any specific new project evaluation, the utilization of the learning curve should lead to improved estimates of costs, revenues, and profits. The important role of R & D management in connection with the learning curve is discussed. The interrelationships involving R & D, the learning curve, and marketing strategies are examined.     

The quality of subjective probabilities of technical success in R & D

Employing various measures for the quality of subjective probabilities of technical success in R & D a detailed analysis of 4 data sets taken from different R & D organizations shows that the probability assessments roughly specify the populations to which R & D projects belong, but are extremely unreliable indicators of the eventual outcome of individual activities. Unintentional errors and conscious biases are identified as accounting for the unsatisfactory quality of subjective probabilities in R & D. Finally, some measures are suggested which might improve the quality of the probability assessments.     

The new product matrix

The paper describes the concept, design and experience with a matrix approach to the problems of communication and co-ordination in a multi-discipline R & D activity. It puts forward a systems approach to the problem of overcoming ‘differentiations’ in high technology industry, as opposed to the individual in the role of ‘integrator’.     

Budgets for research and development: an empirical study of 69 Swedish firms

It was found that, as a rule, firms decide upon individual projects and do not specify in advance a fixed level for the R & D budget. The decision about individual R & D projects and/or the R & D budget was most frequently made by the president of the company. The implication of our results for various kinds of research on the economics of R & D are discussed. Questionnaires were sent out to 124 large Swedish firms, asking how they determined budgets for research and development (R & D) and who decided about the size of these budgets. 94 firms answered and 69 of these undertook R & D.     

R & D and the company's requirements

Numerous models have been put forward in the literature for the selection and evaluation of projects, many of which are based on optimizing the return on investment by the company in R & D projects. This is a noble aim but in practice the financial data available are often of dubious accuracy and so many other factors are involved in actually adopting a portfolio of selected projects that project selection often becomes a theoretical exercise. It is suggested that the selection of projects is in essence the adoption of a strategy which is within the policy and long-term aims of the company and also within the policy and scientific development of the R & D part of the company. Such a strategy is usually sub-optimum for both the company and the R & D division, as it is a compromise between a desire for high pay-back investments by the company and the maintenance of a scientifically balanced R & D involving some long-term, unknown return, investments. A method is currently being experimented with by Unilever Research which illustrates where conflicts arise between the policy of the main company and that of research, and assists management in arriving at a strategy which most closely fulfils the needs of both policies. Both the concept of the method and its practical use are described in this paper.     

The information requirements of R & D management

This brief survey describes the role of R & D in industry, with particular respect to some of the requirements which its management has in order to fulfil its function effectively, more particularly in the field of information, bearing in mind that the product of R&D is yet more information, and that a very broad approach to the problems is required.     

R & D management practices:* chemical industry in Europe

The paper summarizes the results of interviews with R & D managers in forty-three chemical companies in France, Germany, Italy, the Netherlands, Switzerland and the U.K. covering questions concerned with: R & D planning, size and distribution of R & D efforts, organization of R & D and project management. The results are presented in quantitative and qualitative terms, and the differences between various categories of chemical industry and between various national practices are discussed.     

Applications of computers in R & D management

R & D Managers use computers extensively in solving technical problems. This paper examines the use they make of computers in solving Management problems. Applications of computers to various aspects of R & D programme formulation, project planning, technical information storage and retrieval, management information systems, and computer-aided training have been investigated by many companies and, in some cases, have been implemented. Some of the techniques have become well established but others are still at a development stage. No attempt has been made to evaluate the techniques described. This topic was the subject of a study by a Working Group of the European Industrial Research Management Association (EIRMA), and a report ‘Computers as Aids to R & D Management’ was distributed to members of the Association. EIRMA has now agreed to release information contained in that report and this paper is based on that information updated by the author, who was Chairman of the EIRMA Working Group.     

The selection and evaluation of word processing equipment in a research organization

. This paper is concerned with the selection, evaluation and subsequent implementation of shared logic word processing equipment in an R & D environment. The authors formed a multidisciplinary team in order to carry out the project from the stages of problem definition to final evaluation in all its aspects of the chosen equipment.     

The financing of R & D in some socialist countries of Eastern Europe

In the countries of Eastern Europe the financing of R & D represents a difficult problem in terms of economic scientific policy. In these countries it is not only a question of a simple apportionment of centrally-held financial means to subordinate institutions, but also one of supporting promising fields of science, protecting long-term and costly research programmes against risks and losses, and, above all, providing an incentive for R & D institutions to work out economically meaningful R & D results and translate them into economic practice. This last point is of particular importance in a system lacking a free market mechanism. A historical survey of the development of financing methods in the R & D field and of the numerous attempts to reform these methods will show the extent of the efforts made in Eastern Europe (whether successfully or not does not concern us here) to find an adequate solution to these problems.     

Methodology for increasing the adoption of R & D project selection models

Although some studies and experiences have shown that R & D project selection models can be potentially useful decision aids, their adoption and routine use is not widespread. This lack of usage may be a consequence of the lack of attention which model builders have traditionally given to the prevailing adoption attitudes of R & D managers. A design methodology centering around the measurement of adoption attitudes has been developed and used by the authors. The methodology consists of procedures for analyzing the organizational climate relative to project selection model usage, developing an acceptable model form relative to the organizational climate, and inducing the adoption of this model form within the climate. Three case applications of the methodology are described in which negative-to-positive shifts in adoption attitudes occurred and project selection models were adopted for long-term use. These results indicate that the use of this general methodology may lead to increased formal adoption and widespread usage of project selection model forms in R & D.     

Managing growth and change in an R & D organization: the role of dynamic modeling

A system dynamics model of its R & D organization has been developed by Battelle Northwest to serve as a basis for improved management planning and policy making. This model was designed to be applied in an interactive man–model environment. Thus far, the model has proven useful in forecasting future resource demands under various contingencies; and, importantly, it has improved management's understanding of the structure and dynamics of its organizational environment.     

Hazard and Operability Studies and their initial applications in R&D

Increasing technological complexity together with contemporary social and legal pressures have made it necessary to develop more effective approaches to safety. The need is particularly strong in the design and operation of chemical and pharmaceutical manufacturing facilities. An approach has been developed by one company operating in these fields and applied to its production facilities for a number of years. This paper describes the approach together with the recent extension of the method into the R & D area.     

Steady state and portfolio concept in R & D management

This paper describes a new approach for closing the gap between the tools for strategic goal management and operational management in Pharmaceutical R&D. The strategic level may concern with expectation of sales, rising from new products and with total R & D budget. The operational level concerns with project selection, project and multiproject management problems, solution of project related technical problems, determination of the size of the various functions and the functional management. This new method combines the R & D project portfolio management with a steady state concept allowing the attainment of a constant number of projects under development and a continuous full use of the capacity available.     

A mathematical model for projecting the demand for scientists and technologists in national R & D institutes

This paper presents an analytical framework for man-power planning which is being developed as an aid to projecting the demand for scientists and technologists in India. It is presented in the hope that it might be of interest to people concerned with this issue In other developing countries. In using the model the main problem is that of measuring the output in the R & D institutes. In attempting this it is inevitable that some degree of subjective judgment is involved. The method adopted is described in the paper, and using a very simple input—output type of matrix and data taken from five-year plans, some preliminary results have been obtained which enable an assessment to be made of the demand for various kinds of scientists and technologists in the national R & D institutes in India.