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Impact of financing on optimal R & D resource allocation

  • Scheduling And Allocation Problems
  • Conference paper
  • First Online:
Optimization Techniques

Part of the book series: Lecture Notes in Control and Information Sciences ((LNCIS,volume 23))

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Abstract

The main results of this paper are: 1) viewing the R & D effort in an organization as a financial investment, and 2) proposing methods for optimal R & D investment. When the return-on-investment for the R & D can readily be estimated, the usual investment evaluation methods can be extended for optimization. When a direct estimation of return is difficult, a quantity called "equivalent return-on-investment" is used instead. A method for determining the equivalent return-on-investment from an arbitrarily scaled utility function is proposed, providing a way for the optimization of investment levels for R & D activities, which are not all product-directed.

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References

  1. B. J. Greenblott and J. C. Hung, "A Structure for Management Decision Making," IEEE Transactions on Engineering Management, Vol. EM-17, No. 4, 1970, pp. 145–158.

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  2. L. P. Anderson, V. V. Miller, and D. L. Thompson, The Finance Function, Intext Educational Publishers, Scranton, Pennsylvania, 1971.

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  3. J. C. Van Horne, Financial Management and Policy, 4th edition, Prentice-Hall, Inc., 1977.

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Author information

Authors and Affiliations

  1. The University of Tennessee, 37916, Knoxville, Tennessee, U. S. A.

    S. H. Hung (Graduate Student), J. C. Hung (Professor) & L. P. Anderson (Professor)

  2. Department of Finance, USA

    S. H. Hung (Graduate Student) & L. P. Anderson (Professor)

  3. Department of Electrical Engineering, USA

    J. C. Hung (Professor)

Authors
  1. S. H. Hung
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  2. J. C. Hung
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  3. L. P. Anderson
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Editor information

K. Iracki K. Malanowski S. Walukiewicz

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© 1980 Springer-Verlag

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Hung, S.H., Hung, J.C., Anderson, L.P. (1980). Impact of financing on optimal R & D resource allocation. In: Iracki, K., Malanowski, K., Walukiewicz, S. (eds) Optimization Techniques. Lecture Notes in Control and Information Sciences, vol 23. Springer, Berlin, Heidelberg. https://doi.org/10.1007/BFb0006624

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  • DOI: https://doi.org/10.1007/BFb0006624

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  • Publisher Name: Springer, Berlin, Heidelberg

  • Print ISBN: 978-3-540-10081-2

  • Online ISBN: 978-3-540-38253-9

  • eBook Packages: Springer Book Archive

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