| Abstract: | 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. |
