R&D project selection: Productivity considerations
The paper consists of a theoretical discussion of the circumstances justifying the use of RD re-equip with purchased existing best-practice technology; or use R&D to develop new technology. 
 
 
 
The choice depends on which of the four following situations exist: 1) When the productivity of existing capacity is well below its potential and is also well below that of the industry's best-practice; in this case the right strategy is first to bring actual productivity up to potential, and then to consider the purchase of best-practice. 2) When productivity is well up to potential but is well below best practice; the advice is then to purchase best-practice. 3) When existing capacity is already best-practice but productivity is well below capacity; in this case productivity of existing plant should be increased. 4) When existing capacity is bestpractice and productivity is near the maximum; then and only then is R&D to develop new technology justified. 
 
 
 
The paper concludes with a brief account of the process to be undergone between the establishment of a case for R&D using the above criteria and, if R&D is undertaken and completed, the retrospective review of its outcome.
Resource Allocation In R&D Departments
AbstractThis paper examines the problem of allocating funds within research and development organizations, where several departments and multiple research areas must be considered. Furthermore, impacts arising from budget shifts must be measured in terms of various factors or criteria that may be qualitative or quantitative. Using a particular research and development organization, Ontario Hydro, as a backdrop, we develop a framework for evaluating budget changes when (a) multiple criteria, (b) multiple opinions, and (c) qualitative factors are involved. A three stage procedure for budget allocation is proposed. In the first stage, management responses regarding the perceived impacts of budget changes are combined to arrive at a consensus. In stage two, the multiple criteria consensus values are used to derive an overall impact rating for each proposed budget shift pertaining to each of a set of research areas. Finally, in stage three an optimal subset of budget shifts is chosen from the set of all possib...
Computer Simulation Modeling
Computer simulation as a research methodology is presented as the intersection of modeling, simulation, and computer analysis. Five component parts of simulation models are identified: input variables, output variables, assumptions, algorithms, and parameters. Computer simulation (CSM) has two primary uses for those interested in the study of organizations or who work within them: theory development and policy planning. The advantages and disadvantages of CSM for each of these purposes are examined and recent examples for each are explored.