Addressing R&D investment decisions: a critical review and comparison of R&D project selection methods

A large number of methodologies for R&D project selection have been developed and reported in 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. The authors have identified the key issues for the comparison of the existing techniques used to evaluate alternative projects and portfolios of R&D projects. This paper discusses the strengths, weaknesses, limitations and practicality of the methods with the aim of providing a set of guidelines to help managers to choose the project evaluation and selection model appropriate for their specific problems. It concludes with the suggestion about some integrated models (hybrid approach) and the latest solutions which could fill the gaps in existing selection methods.