Addressing R&D investment decisions: a cross analysis of R&D project selection methods

A large number of methodologies for R&D project selection have been developed and reported in the literature over the last few decades, and it has become a very popular research topic since the 1960s. The aim of this paper is to classify and characterize the determining aspects behind the research and development project selection process.

After carefully reviewing the literature and analysing the latest contributions the paper identifies the key issues for the comparison of the existing techniques used to evaluate alternative projects and portfolios of R&D projects. In the second phase the main selection methods (including the latest project portfolio optimisation approaches) are reviewed and critically compared.

The strengths, weaknesses, limitations and practicality of the methods analysed allow managers to choose the project selection model appropriate for their specific problems. Some integrated models (hybrid approach) and the latest solutions could fill the gaps in existing selection methods.

Although previous literature has made valid points about this subject, for the most part it concentrates on describing the project selection methods and highlighting their strengths and weaknesses. What seems to be missing, however, is a comparison of these methods. This paper contributes to bridge this gap, offering analysis that can support decision makers in their choice of the most suitable tool useful for evaluating a range of R&D projects.