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A company model for research and development
Author(s) -
Jarvis P. E. J.,
Rippin D. W. T.
Publication year - 1976
Publication title -
randd management
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.253
H-Index - 102
eISSN - 1467-9310
pISSN - 0033-6807
DOI - 10.1111/j.1467-9310.1976.tb01097.x
Subject(s) - investment (military) , capital (architecture) , return on investment , capital investment , capital expenditure , economics , econometrics , business , finance , microeconomics , production (economics) , geography , political science , archaeology , politics , law
A company model is presented which may be used to assess the effecton future company performance of the level of investment in research and development. A distinctive feature of the model is the postulation of research return curve which relates the available return on potential new capital investments to the amountof capital invested and the size of a research pool. The latter is related to past R & D expenditure. It is shown how the research return curve may be adjusted to represent different types of industry and how a suitable form for this curve may be derived from company records. Examples are given of the use of the model for sensitivity and optimization studies.