A review of R&D evaluation methods

R&D evaluation methods and associated techniques are briefly reviewed. First, the use of checklists — ranging from a simple list of elements to a catalogue of profiles, or information patterns — is investigated. Then, some of the difficulties of interpretation and application of the deceptively simple index method — including consideration of the Olsen, Pacifico, Teal, and Disman formulas — are examined. This method is approached also from the return on original investment (ROOI) viewpoint and, by this means, several intriguing and unifying relationships, and certain new R&D indices are derived. Following a look at some indices of different type, some miscellaneous methods — including risk analysis, credibility forecast, decision tree, impact analysts, and one or two other techniques — are touched upon. It appears that a good evaluation method might be gained by combining impact and risk analyses, adding R&D costs and probabilities of success, and boiling the system down. This is a formidable exercise, however, and circumstances often dictate a more pragmatic approach. In fact, the difficulties involved in handling R&D evaluation explain the creation of, and the tendency to use, the simpler methods. However, the limitations of these simpler evaluation methods should be recognized.