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Research and development project selection in the public sector
Author(s) -
Vonortas Nicholas S.,
Hertzfeld Henry R.
Publication year - 1998
Publication title -
journal of policy analysis and management
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 2.898
H-Index - 84
eISSN - 1520-6688
pISSN - 0276-8739
DOI - 10.1002/(sici)1520-6688(199823)17:4<621::aid-pam2>3.0.co;2-i
Subject(s) - argument (complex analysis) , value (mathematics) , investment (military) , ex ante , economics , public sector , selection (genetic algorithm) , term (time) , business , political science , macroeconomics , computer science , economy , biochemistry , chemistry , physics , quantum mechanics , machine learning , artificial intelligence , politics , law
This article argues for an innovative methodology to appraising (ex ante) longer‐term strategic research and development (R&D) investments. This methodology reflects the inherent value of such R&D in terms of opening up opportunities (but not obligations) for investment in new technological areas with potentially substantial returns. Although corporate R&D managers and public administrators describe the merits of long‐term research on these grounds, only recently has the qualitative argument been replaced by the foundations of a methodology capable of quantifying this inherent value of R&D. Such a methodology could also facilitate a transition toward the use of more appropriate discount rates other than the unvarying rates of traditional methodologies.