Determining the Duration of R&D Processes through Monte Carlo Simulation

The research and development (R&D) processes influence the economic development of a company, because in an industry that is changing fast, firms must continually revise their projects and range of products. The novelty of the paper is that it focuses on determining components of cost and the duration of the R & D processes in its cost calculation procedure. The originality of this work is the use of Monte Carlo simulation to determine the average length of producing a new product.