Abstract

The article focuses on quantitative methods in research and development (R&D) management. A new tool to aid the research-and-development manager has emerged in the past few years. That tool is the application of quantitative techniques to management problems in the R&D area. Though the subject is a relatively new one, such techniques as programming models, network-flow models, man-hour analyses and evaluation formulas are developing rapidly. Because all of these techniques have been designed to aid managers by clarifying complex R&D situations, businessmen's interest in this new field has accelerated greatly in the past few months. Here is a report on and an analysis of the latest research developments in this timely study. The constrained maxima-programming type of model, which is usually formulated on a stochastic basis, fries to find answers to the dual questions of how much to spend for research and how to allocate it among projects. Net worth or value of research programs are derived from values of individual experiments. Then the best of all possible programs is selected by the procedure.