Stage approach for the evaluation and selection of R&D projects

Sequentiality in decision making is an inherent characteristic of the R&D process. Conceptual changes are noted during the course of the project which represent a continuous improvement in the quality of the data available during the various project stages. When using single evaluation models, a contradiction is observed in that the same tool is used for varying conditions such as levels of R&D cost, time needed, and degree of risk and uncertainty at a given stage, with the result that the technique does not always fit the need. It is proposed, instead, to use a combination of differentiated models based on a stage approach for project screening, evaluation, and selection. The bases of this approach are: a) identification and utilization of specific attributes characterizing the individual R&D stage. b) selection of differentiated qualitative-quantitative models for evaluation at each stage. The selected models must be commensurate with the quality and quantity of data available at each stage. c) correlation of the magnitude of resources committed and the chance of project success. The proposed methodology is based on the adaptation of available models.