Assessing cost/benefits of research and development investments

A methodology is presented for assessing the economic and noneconomic cost/benefits of investments in research and development. It is argued that the most difficult aspect of cost/benefit analysis is not calculation, but representation of stakeholders, products, benefits, and costs. A stakeholder-based methodology is described that focuses on these representation issues. Use of this methodology is illustrated with a case study of a long-term government research and development (R&D) program.