• IE interfaces
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• v.24 no.4
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• pp.408-419
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• 2011

R&D is a foundation for new business chance and productivity improvement leading to enormous expense and a long-term multi-step process. During the R&D process, decision-makers are confused due to the various future uncertainties that influence economic and technical success of the R&D projects. For these reasons, several decision-making models for R&D project investment have been suggested; they are based on traditional methods such as Discounted Cash Flow (DCF), Decision Tree Analysis (DTA) and Real Option Analysis (ROA) or some fusion forms of the traditional methods. However, almost of the models have constraints in practical use owing to limits on application, procedural complexity and incomplete reflection of the uncertainties. In this study, to make the constraints minimized, we propose a new model named Real Option Decision Tree Model which is a conceptual combination form of ROA and DTA. With this model, it is possible for the decision-makers to simulate the project value applying the uncertainties onto the decision making nodes.

• Journal of Korea Technology Innovation Society
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• v.1 no.1
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• pp.117-124
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• 1998

Corporations are pursuing maximum returns from their R&D investment. They are also interested in sound measures to quantify returns. In fact, they use various measures and criteria for measuring returns from the R&D investment. But the fundamental problem is that there is no generic and widely acceptable measures and criteria. To make things more complicated, measures are very powerful and influential to the people in the corporations. Herbert Simon already indicated that people do many things but people usually do their best for the only tasks which are measured. Many researchers, like Chester(1995), are interested in R&D productivity measures and risks because what the company measures really influence R&D people and output. This article present design concepts of the R&D project selection and evaluation system in POSCO(Pohang Iron & Steel Company). This is an output extract from the 6-month joint activities with POSRI(POSCO Research Institute) researchers and POSCO R&D personnel. Process changes, new organizations and new selection and evaluation criteria are developed to improve R&D performance and to enhance technology management of the POSCO. This article covers new selection and evaluation criteria only. We would like to share our experience about how we redesign the selection and evaluation of R&D projects. We also bring insights how we seamlessly integrate 4 different project selection and evaluation steps as a whole. We hope that this case will give you a clue to improve your R&D management.

• The Journal of Society for e-Business Studies
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• v.17 no.2
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• pp.165-187
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• 2012

Improvements on the incumbent R&D project management structure and performance evaluation criteria in the telecommunication and broadcasting area have been called for. There have been attempts to develop alternative R&D project performance evaluation criteria. In an attempt to develop an alternative measure, this study integrates two different perspectives on R&D projects and various criteria currently being used by many foreign and domestic institutes. As a result, we have developed an alternative R&D project performance evaluation instrument. Then, we have applied the instrument to Korean cases in order to validate it. The new R&D project performance evaluation criteria can contribute to an improvement on the management of R&D projects in the telecommunication and broadcasting area.

• Journal of Korea Technology Innovation Society
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• v.21 no.4
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• pp.1474-1492
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• 2018

This study empirically analyzes the direct effects of government support for SMEs (project success) and indirect effects (sales growth) focusing on the differences between financially difficult firms (so-called 'zombie' firms) and 'normal' firms. If the zombie firm has a problem in technology development (success of the project) and the economic resilience capability (sales growth), then excluding them from the government's R&D support programs would enhance the overall efficiency of the programs. If not, government R&D could complement the market failure and play a positive role in revitalizing marginal firms. In this study, we collected data about 7,575 firms who participated in seven government R&D programs in 2013 and 2014. As a result of the logistic regression analysis, we did not find evidence that the likelihood of success for zombie firms was lower than that for the normal firms. However, the tendency of sales growth after the project was smaller for the zombie firms than for the normal firms. For zombie firms, we also found that firms that succeeded in the project were more likely to increase sales than those that failed.

• Journal of Technology Innovation
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• v.16 no.1
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• pp.107-139
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• 2008

We studied how to achieve successful implementation of massive research and development projects requiring collaboration among industries, universities and government-supported research institute. We have set up an engineering process innovation model to be deemed most adequately for all practical purposes, relying on the theoretical studies on the merits and analysis of the effect of the information system based on Milestone Management, Work Breakdown Structures and Web, which is known to be effective for research project (schedule) management and the objective management, and implemented a real-world web-based project objective management system. After a review of various R & D Project Schedule Management methods, we found that this information system was very compatible with project objective management. This project objective management information system carries out research and development projects effectively and efficiently, getting together in cyber-space and sharing information, and has been equipped with an Early Warning Subsystem to allow for pre-analysis and timely response to potential problems arising from the course of the project. The system also contains an Executive Information System that in real time, automatically provides the management information required by managers with the rate of project progress (achievement, fulfillment and delay). Lastly, actual progress can be cross-checked through both on-line objective management on the web-based information system and design review meeting held on site, to improve the efficiency and validity of the information system. Moreover, overall effect was analyzed through questionnaires on how well the system and generated information meet requirements and on the ultimate impact of the system upon objective management and communication. The questionnaire on the system effect revealed that the information system was useful to objective management and communication, and that the quality of the system was more than acceptable as well.

• Korean Management Science Review
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• v.25 no.1
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• pp.1-9
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• 2008

This paper investigates the R&D project portfolio selection problem. Despite its importance and impact on real world projects, there exist few practical techniques that help construct an non-dominated portfolio for a decision makers satisfaction. One of the difficulties constructing the portfolio is that such project portfolio problem is, in nature, a multi-attribute decision-making problem, which is an NP-hard class problem. This paper investigates the R&D project portfolio selection problem. Despite its importance and impact on real world projects, there exist few practical techniques that help construct an non-dominated portfolio for a decision makers satisfaction. One of the difficulties constructing the portfolio is that such project portfolio problem is, in nature, a multi-attribute decision-making problem, which is an NP-hard class problem. In order to obtain the non-dominated portfolio that a decision maker or a user is satisfied with, we devise a user-interface algorithm, in that the user provides the maximum/minimum input values for each project attribute. Then the system searches the non-dominated portfolio that satisfies all the given constraints if such a portfolio exists. The process that the user adjusts the maximum/minimum values on the basis of the portfolio found continues repeatedly until the user is optimally satisfied with. We illustrate the algorithm proposed, and the computational results show the efficacy of our procedure.

• Proceedings of the Korea Technology Innovation Society Conference
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• 2002.05b
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• pp.181-198
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• 2002

This article describes a methodology for evaluating huge aerospace R&D investments using the real options pricing method. Option pricing has been proposed as a useful approach for modeling investment in R&D. Two important features of R&D investments are that an R&D project takes time to complete and that the outcome of R&D investments is highly uncertain. This makes the analysis of R&D investments difficult. Traditional tools for project evaluation, like IRR or the NPV, are inadequate for coping with the high uncertainty. Hence, In this article I propose a log-transformed binomal lattice method, and it will show that option pricing might be an adequate framework for evaluating such types of aerospace investments.

• Journal of the military operations research society of Korea
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• v.30 no.2
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• pp.122-132
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• 2004

The aim of this paper is to show the process of R&D Project-Priority Ordering in the Defense Technology field. We propose specific methods (Delphi, Analytic Hierarchy Process (AHP), Scoring) to order the R&D Project-Priority. In general, to decide the priority of R&D projects most of researches depend on questionnaires which are surveyed by experts. However, it is criticized that this process cannot reflect the limitation of experience and knowledge of experts. In this process, we separate evaluators in two parts: the first is strategic experts, the second is technical experts. Evaluators can choose and evaluate the alternatives which they are familiar with, so we can obtain reliable results. Finally, based on our process of the R&D Project-Priority Ordering we formulate policy implications for managing the defense technology.

• Journal of the Korea Academia-Industrial cooperation Society
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• v.18 no.11
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• pp.445-453
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• 2017

The Korean government's recent R&D policy has focused on encouraging government-funded research institutes (GRIs) to develop mid-term, long-term, and large-scale R&D projects. It is necessary to prepare thoroughly for the new R&D strategy, but there is no systematic accumulation of planning expertise, and there has been continued demand for good examples of research planning. Therefore, this study analyzes the reports of preliminary feasibility for government R&D programs through a meta-analysis of detailed evaluation items and contents to help researchers enhance their project-planning ability. The evaluation items that can be applied to R&D planning for GRI were reviewed, and twelve detailed evaluation items were selected through content analysis. The results of this study could contribute to practical R&D project planning and the improvement of evaluations.

• Journal of Technology Innovation
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• v.31 no.3
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• pp.171-199
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• 2023

The purpose of this study was to develop an evaluation tool for selecting new projects for R&D project planning level of K Research Institute. For this purpose, items and questions for R&D project selection evaluation were developed based on the CIPP model and previous studies on selection evaluation and evaluation indicators for research project evaluation, and then two Delphi surveys were conducted. The developed evaluation tool was surveyed by 13 experts to verify contents validity ratio, convergence and consensus. The finally selected evaluation tool for R&D project planning consisted of 21 questions in 8 items, including 5 questions for context evaluation, 2 questions for input evaluation, 8 questions for process evaluation, and 6 questions for product evaluation. The evaluation tool developed will contribute to the solution of problems in the bottom-up planning process and to the improvement of the planning competence of the researchers. It will also contribute to improve the consistency and efficiency of evaluation during the selection process.