Research on a Research Department: An Analysis of Economic Decisions on Projects

Abstract

A case study was made of the way in which economic analyses were carried out on research and development projects in a medium-sized company. The flow diagram for a typical research project is presented. Interviews with key executives in the company and the analysis of a number of discontinued or unsuccessful projects provided data on who made what economic decisions during the life of a project. Several gaps were found in the decision-making procedure and recommendations were made for improvement. A number of new management control forms were developed and adopted by the company.