The Selection of Projects for Industrial Research

Research organizations have a tendency to propose problems for investigation at a faster rate than resources can be supplied to support the work. This poses a fundamental issue for the managers of industrial research because there are always more ideas and problems to be investigated than the available resources will permit. Research management, therefore, is faced with the problem of selecting the set of projects that it expects will achieve maximum effectiveness for the company. The paper presents a method of evaluating applied research proposals that is based on the use of numerical scores to quantify certain important criteria, such as the promise of success, the time required for completion, the projected costs, the market situation, and the expected gain. The composite scores can be used to determine the best project mix or program for a given budget allocation. The rating system serves to enhance managerial judgments at all levels regarding the selection of individual projects, the makeup of the research program, and the evaluation of the program's future economic impact on the company.