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.     

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.     

The management of Army R & D projects

This study of the accuracy of cost and duration estimates for British defence R & D projects is based on an analysis of the records of 29 Army projects, initiated since 1960. The results are generally similar to American defence studies with which they are compared. The reasons for schedule slippages and cost escalations are examined and it is suggested that performance could be improved by more thorough project feasibility and definition studies and by a stronger project management organization.     

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.     

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.     

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.     

Some evidence on the accuracy of forecasts in R & D projects

In recent years many formal attempts, e.g. Baker & Pound, (1964), have been made to help R & D management assess the worth of R & D projects and select those most worthy of inclusion in the R & D programme. Most of these attempts are based on financial appraisals of a project's worth and require estimates of the costs and likely revenues that will result from the adoption of a given project. It is clear, therefore, that the validity of any measure of a worth for a project is dependent upon the accuracy of the estimates of cost and revenue associated with that project. Unfortunately the limited amount of evidence so far presented suggests, in particular, that cost estimates are extremely inaccurate.
In this paper, therefore, we try to add some further evidence on forecast accuracy for a number of industrial R & D projects. We begin with a short review of the existing literature evidence and continue with an analysis of the past effectiveness of R & D work and, in particular, of forecast accuracy.     

Project selection in Post Office telecommunications R&D

In an industry in which the benefits of R & D are often difficult to quantify, numerate processes for the selection of projects and portfolios are of limited usefulness. The processes that are used provide formal means, necessary in a large organization, to enable managerial judgment at an appropriate level to be applied to both project selection and the balance of the portfolios.     

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.     

RESPRO-an interactive procedure for planning newproduct chemical research

The model has been developed specifically for the great uncertainties obtaining in new-product chemical researchparticularly in the pharmaceutical industry-but it is hoped that it will prove flexible enough to be used in other circumstances. The program is in Fortran and could be run on most computer systems.
Procedures for selecting projects and reviewing their progress are becoming increasingly important aspects of R & D management. Modelling a procedure mathematically can prove advantageous, especially if such a model is capable of computational analysis, for then the policy alternatives can easily be explored and compared. This paper describes one such computer based procedure. In quantifying the value of any effort allocation, the program automatically takes account of the fact that estimates of the likelihood that a project will result in a new discovery change as work continues on the project. It also computes a marginal profitability index for each project. Comparison of these indices suggests ways in which effort might profitably be re-allocated among projects.     

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.     

The influence of voluntarily disclosed qualitative information

We examine the voluntary disclosure of qualitative information about actions involving governmental agencies and managerial intentions or beliefs in R&D project announcements in The Wall Street Journal. Our analysis indicates that information regarding government approval and managerial intentions/beliefs voluntarily disclosed in R&D project announcements interacts with industry/firm variables to provide significant incremental explanatory power in both the innovation and commercialization stages of R&D projects. Our data also indicate that the biggest impact is from managerial intentions, especially an intent to increase market share when coupled with being a larger firm. Copyright © 2000 John Wiley & Sons, Ltd.     

R&D projects in the science sector

The purpose of this research was to determine and analyse diversity in various features of R&D projects implemented in the science sector in Poland, financed mostly from public funds. More exactly, the following aspects of R&D projects implemented in the science sector in Poland were examined: the relation between the actually achieved and the initially set goal, the project management methodologies and project time management methods used, features of the project team, the relation between the plan and the actual project realisation and management difficulties encountered in practice. These aspects and their diversity were examined in the context of the whole country, of various fields of science and various research units implementing pure research (the ‘R’ area) or applied research and experimental development (the ‘D’ area). The research was conducted by means of survey methodology covering a sample of participants of R&D projects in the science sector in Poland. The results were analysed by means of statistical methods (which constitutes a clear novelty with respect to the existing literature on R&D projects) and statistically significant phenomena gave rise to several important conclusions on how R&D projects implemented in the science sector are managed and what their realisation looks like in various fields of science and various institutions, in a relatively new EU members state and a former communist country like Poland. These conclusions may be the basis for important hypotheses (which require further research) on the project management quality in the science sector in Poland and in similar countries, which is closely linked to the problem of public money allocation, its efficient spending and control. Also, practical suggestions on improvement measures in the science sector with respect to R&D projects, limited not only to countries like Poland, but of a more general nature, are formulated.     

复杂项目危机研究回顾与展望

现代项目日趋复杂,复杂性特征使得现代项目更易遭遇危机,复杂项目危机的传染性使得此类项目危机管理的重要性日益凸现,传统项目管理方法在应对复杂项目危机的局限性逐渐显露。从复杂项目的复杂性特征、复杂项目危机影响因素和危机管理方法及措施、网格技术的特点及网格技术应用于复杂项目危机管理的优势3个方面对国内外学者在复杂项目危机应急管理方面所作研究进行系统的梳理和总结,在此基础上,指出当前研究的不足,基于新兴的计算机网格技术提出了未来复杂项目危机管理的研究方向。     

An R & D planning and control servosystem: A case study*

This paper describes a planning and control system (PACS) to aid R & D decision-making which has been developed and used at the Monsanto Company, St. Louis, Missouri, U.S.A. The planning model portion of the integrated system is a two-dimensional dynamic programming resource allocation algorithm which performs project selection, budgeting and scheduling. Behavioral parameters that can be used to simulate certain organizational factors are included in the planning model. The control model portion of the integrated system develops cost-effectiveness measures of variances between actual and planned performances for ongoing projects over time, which provide early warnings of pending project failures and guide control action. Applications of the system at Monsanto indicate that it significantly aids the development of satisfactory organizational decisions and also provides a laboratory for pretesting decisions.     

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.     

Three-dimensional representation of company business and investigational activities

This paper describes a management aid devised to illustrate the inter-relationships between present company business activities and the investigational activities of the various company R&D functions. It is based on the- construction of a three-dimensional model in which the raw material, process and market parameters are the axes. Use of the model can facilitate project definition and selection in R and D departments and can be extended as a management aid in studies of R & D resource allocation and acquisition studies.     

Interaction between management and R & D: chemical industry in Europe

The paper summarizes the results of interviews, primarily with the R & D manager, in 43 chemical companies in France, Germany, Italy, the Netherlands, Switzerland, and the U.K. covering questions concerned with the background and attitude of various levels of management and their interaction with R & D. The results are presented in quantitative and qualitative terms, and differences between various categories of chemical industry and between various national practices are discussed.     

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.     

When Research Meets Development: Antecedents and Implications of Transfer Speed

This paper focuses on the organization of new product development in large, R&D‐intensive firms. In these firms, research and development activities are often separated. Research is conducted in dedicated research projects at specialized research labs. Once research results are achieved by research projects, they are transferred to business units for further development and commercialization. We investigate the speed whereby research projects transfer their first research results to business units (hereafter: transfer speed). In particular, we analyze the antecedents and performance implications of transfer speed. Based on data of 503 research projects from a European R&D intensive manufacturing firm, our results suggest that a fast transfer speed (as measured by the time it takes for a research project to develop and transfer its first research result to business units) is associated with a better research performance (as measured by the total number of transfers the research project generates). Moreover, we find that different types of external R&D partners—science‐based and market‐based partners—play distinct roles in speeding up project first research transfers. While market‐based partnerships (i.e., customers and suppliers) generally contribute to a faster transfer of first research results, science‐based partnerships (i.e., universities and research institutions) only speed up first research transfers of technologically very complex projects. Our results also show that early patent filings by research projects accelerate first research transfers.