• Korean System Dynamics Review
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• v.12 no.2
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• pp.153-176
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• 2011

This paper is a summary of how we constructed a national R&D investment model. Although a national R&D investment is an important decision making for the government as well as industries, currently there were little efforts on making a model reflecting governmental decision making on the individual size of national R&D. We constructed a simple national R&D model through discussion with 3 researchers who have rich experience of governmental investment of national R&D. In this paper, we tried to show how our simple R&D model can reflect the perception on the R&D efficiency that changes as the industry reach to its saturation level.

• Knowledge Management Research
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• v.20 no.4
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• pp.119-129
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• 2019

This paper is aim to test how market orientation is related to the investment decision making. After controlling for firm-specific factors, this study finds a significantly positive relationship between market orientation and R&D expenditures, especially firms with high ratio of intangible assets and low ratio of abnormal inventory assets. Under conditions of low quality of earnings, the negative relation between market orientation and R&D expenditures is enhanced in electronic related industries. This indicates that the relation between market orientation and R&D expenditures may exhibit more reasonable patterns for investment decision of firms in technology driven business environment.

• Journal of Information Management
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• v.33 no.4
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• pp.107-128
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• 2002

The purpose of this study is developing a information support system for R&D decision making to maximize economic results of the R&D. This system is composed of studying the model of work flow for R&D decision making, analyzing a technology information, connecting with the databases from KISTI and others, and valuing R&D technology on line. Especially in the case of technology valuation, this system is combined with the valuation model which supports knowledge information for helping more objective estimation.

• IE interfaces
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• v.24 no.4
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• pp.408-419
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• 2011

R&D is a foundation for new business chance and productivity improvement leading to enormous expense and a long-term multi-step process. During the R&D process, decision-makers are confused due to the various future uncertainties that influence economic and technical success of the R&D projects. For these reasons, several decision-making models for R&D project investment have been suggested; they are based on traditional methods such as Discounted Cash Flow (DCF), Decision Tree Analysis (DTA) and Real Option Analysis (ROA) or some fusion forms of the traditional methods. However, almost of the models have constraints in practical use owing to limits on application, procedural complexity and incomplete reflection of the uncertainties. In this study, to make the constraints minimized, we propose a new model named Real Option Decision Tree Model which is a conceptual combination form of ROA and DTA. With this model, it is possible for the decision-makers to simulate the project value applying the uncertainties onto the decision making nodes.

• Korean System Dynamics Review
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• v.13 no.1
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• pp.159-182
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• 2012

Strategic decision on the execution of national security improvement project is greatly important for the present and future national security. Though, the importance of strategic decision, decision making process has been executed under one-way thinking framework. This research provides a decision-making tool with make-or-buy approach for the national security improvement policy execution methods: foreign purchase and military R&D project, and, via simulation, confirms dynamic change of military capability index respect to change in ratio of foreign purchase and military R&D. A result shows that current ratio of foreign purchases and military R&D is insufficient for national security improvement policy goal. Applying the model from this research provides an appropriate ratio for short term and long term defense strategy and policy goal, and consequent result of increase in national security capability. Thus, this research model can be effectively utilized for national security improvement project.

• The Journal of Information Systems
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• v.21 no.4
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• pp.109-132
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• 2012

Social Network Analysis is an increasingly important part of a broader 'toolbox' of evaluation methods available to R&D policymakers to support decision-making. The aim of this research is to be an accessible, 'beginner's guide' to social network theory and application in the area of mobile telecommunication research and development (R&D) decision-making. This research suggests the methodology of investigation into new technology, and the methodology suggested by this research is believed to be a meaningful first step toward the establishment of the information analysis structure, which is in desperate need.

• Proceedings of the Technology Innovation Conference
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• 2001.06a
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• pp.117-130
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• 2001

R&D is the core competence of an enterprise. Furthermore, R&D requires huge capital investment and has very risky characteristics. Therefore, to be successful in R&D process, several approaches of engineering economics are used prior to decision-making. Until now, typical approaches of engineering economics such as NPV(net present value) or DCF(Discounted cash flow) have been used. But, they cannot properly capture managerial flexibility to adapt and revise later decisions in response to unexpected market development. In a constantly changing and always uncertain marketplace, managerial operation flexibility and strategic adaptability have become vital in order to successfully capitalize on favorable future investment opportunities and limit losses from adverse market development. For the alternatives of conventional static decision-making approaches, new concept of using real options is introduced. Real option theory is based on financial option's characteristics and checks every revision interval whether situation have changed favorable to decision maker or not. In advantageous situation, the decision maker has only to go on. In contrast, with unfavorable situation, he abandons the investment immediately. In this aspect, real option model is more suitable in very uncertain and dynamic business environment in that it can provide the opportunity to cope with flexibility. This paper suggests efficient and effective R&D investment strategy by using real options model. In addition, this paper compares financial options and real options.

• Journal of Korean Society of Industrial and Systems Engineering
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• v.32 no.2
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• pp.29-37
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• 2009

National R&D programs play an important role in the development of a country in this age of the knowledge economy. Since many numbers of R&D programs compete for limited resources such as national R&D budget, the R&D program evaluation problem is a challenging decision-making problem faced by decision makers that deal with R&D management. In this sense, DEA(Data Envelopment Analysis) has been regarded as one of the most widely accepted methods to measure the relative efficiency of productivity of R&D programs. DEA is a methodology to measure and to evaluate the relative efficiency of a homogeneous set of decision-making units(DMUs) in a process which uses multiple inputs to produce multiple outputs. However, the sample of the R&D programs could consist of two or more naturally occurring subsets, thus exhibiting clear signs of heterogeneity such as different objectives. In such situations, the fairness of DEA is limited, for the nature of the relative efficiency of a DMU is likely to be influenced by its membership in a particular subset of the sample. In this study, we propose a methodology AI-DEA(attainment index DEA) allowing for reflecting decision maker's subjective judgement on difference among different subsets of R&D programs which have heterogeneous objectives. This methodology combines AHP and Delphi in order to decide the attainmnet index of each DMU for each outputs, and apply them to DEA model. We illustrate the proposed approach with a pilot evaluation of 13 programs involving 6 different subsets of Korean National R&D programs and compares the results of the original DEA model and AI-DEA model.

• New & Renewable Energy
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• v.4 no.1
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• pp.25-30
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• 2008

The R&D budget of energy technology development has increased in the sector of korean energy technology development continuously. In addition to that, KIER, the government invested research institute and unique energy technology R&D research institute, is trying to plan for a big-sized energy R&D program for the well focused R&D and excellent research outcomes. In the phase of R&D process, the planning is one of the most important sectors because it drives the direction of R&D. In this study, we suggest the assessment criteria to select a strategic energy technology R&D programs by the analytic hierarchy process, which is one of multi-criteria decision making method (MCDM)We structure 2 tiers of hierarchy for assessing a big-sized R&D program and also establish 6 criteria in the level 1, which are energy environment, economic spin-off, technical spin-off, marketability, KIER mission, and cost. We allocate the relative weights of criteria by checking the values of consistency ratio as making pairwise comparisons. The result of this research will provide the decision makers as they select a right well focused R&D program.

• 한국신재생에너지학회:학술대회논문집
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• 2007.11a
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• pp.690-693
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• 2007

The R&D budget of energy technology development has increased in the sector of Korean energy technology development continuously. In addition to that, KIER, the government invested research institute and unique energy technology R&D research institute, is trying to plan for a big-sized energy R&D program for the well focused R&D and excellent research outcomes. In the phase of R&D process, the planning is one of the most important sectors because it drives the direction of R&D. In this study, we suggest the assessment criteria to select a strategic energy technology R&D programs by the analytic hierarchy process, which is one of multi-criteria decision making method (MCDM). We structure 2 tiers of hierarchy for assessing a big-sized R&D program and also establish 6 criteria in the level 1, which are energy environment, economic spin-off, technical spin-off, marketability, KIER mission, and cost. We allocate the relative weights of criteria by checking the values of consistency ratio as making pairwise comparisons. The result of this research will provide the decision makers as they select a right well focused R&D program.