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Spillovers and the cost of multiproject R&D
Author(s) -
Van Cayseele Patrick
Publication year - 1986
Publication title -
managerial and decision economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.288
H-Index - 51
eISSN - 1099-1468
pISSN - 0143-6570
DOI - 10.1002/mde.4090070210
Subject(s) - computer science , microeconomics , operations research , business , economics , mathematical optimization , mathematics
Abstract The paper presents the cost of sequential and parallel research strategies in multiproject R&D characterized by spillovers between the projects. Larger spillovers associated with a sequential strategy prove to be insufficient to guarantee a cost advantage for this option. This provides a rationale for a parallel research strategy with some duplication of effort, as observed in some real‐world R&D environments.