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A Budget Allocation Model for Large Hierarchical R&D Organizations

Author

Listed:
  • N. R. Baker

    (University of Cincinnati)

  • W. E. Souder

    (University of Pittsburgh)

  • C. R. Shumway

    (Texas A&M University)

  • P. M. Maher

    (University of Alberta)

  • A. H. Rubenstein

    (Program of Research on the Management of Research and Development, Northwestern University)

Abstract

A model is developed which allocates an available budget to research alternatives subject to budgetary constraints on both organizational and technical entities. The solution algorithm is based on the out-of-kilter minimum cost network flow algorithm and is programmed for use in a time-share, conversational mode. Although the model does not describe the decision processes observed empirically, its output is sufficiently similar to actual allocations that it can be viewed as predictive. Strengths and weaknesses of the model are detailed based on questionnaire and interview data provided by the potential users of the system. The decision information system is used to illustrate that experimentation concerned with better understanding of the adoption process can be used to facilitate model design and application.

Suggested Citation

  • N. R. Baker & W. E. Souder & C. R. Shumway & P. M. Maher & A. H. Rubenstein, 1976. "A Budget Allocation Model for Large Hierarchical R&D Organizations," Management Science, INFORMS, vol. 23(1), pages 59-70, September.
    • Handle: RePEc:inm:ormnsc:v:23:y:1976:i:1:p:59-70
    DOI: 10.1287/mnsc.23.1.59
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    Citations

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    Cited by:

    1. Scobie, Grant M., 1984. "Investment in Agricultural Research: Some Economic Principles," Economics Working Papers 232447, CIMMYT: International Maize and Wheat Improvement Center.
    2. Scott A. Shane & Karl T. Ulrich, 2004. "50th Anniversary Article: Technological Innovation, Product Development, and Entrepreneurship in Management Science," Management Science, INFORMS, vol. 50(2), pages 133-144, February.
    3. Chen, Faan & Zhu, Yilin & Zu, Jiacheng & Lyu, Jingyang & Yang, Junfeng, 2022. "Appraising road safety attainment by CRITIC-ELECTRE-FCM: A policymaking support for Southeast Asia," Transport Policy, Elsevier, vol. 122(C), pages 104-118.
    4. Zhang, Jingshun & Hu, Jiayi & Wang, Xitong & Fang, Lien & Jin, Yi & Li, Muyang & Liu, Yangqing & Wu, Anna & Wang, Libin & Liu, Ruining & Zhang, Yi & Chen, Faan, 2023. "Quantifying transport safety success at the regional level: A guide to policy and practice on investment for G20," Socio-Economic Planning Sciences, Elsevier, vol. 89(C).

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