IDEAS home Printed from https://ideas.repec.org/h/pal/stachp/978-1-137-54209-0_3.html
   My bibliography  Save this book chapter

R&D Portfolio Valuation and Formation

In: The Public Sector R&D Enterprise: A New Approach to Portfolio Valuation

Author

Listed:
  • Peter D. Linquiti

    (George Washington University)

Abstract

Chapter 3 confronts the challenge ofpredicting the return on R&D investments before they are made. It critiques traditional government methods that apply discounted cash flow analysis to individual R&D projects in isolation. Option theory and portfolio theory are used to identify potential enhancements to traditional methods. Chapter 3 also demonstrates that focusing exclusively on potential returns while ignoring risk is a fundamentally unsound practice. Methods often used by the private sector to form, value, and manage portfolios of R&D projects are summarized, including the “bucket” method, quantitative multi-objective methods, static choice methods, and dynamic management methods. While a portfolio perspective is rarely taken within government R&D programs, a few examples are identified and characterized.

Suggested Citation

  • Peter D. Linquiti, 2015. "R&D Portfolio Valuation and Formation," Science, Technology, and Innovation Policy, in: The Public Sector R&D Enterprise: A New Approach to Portfolio Valuation, chapter 3, pages 45-73, Palgrave Macmillan.
    • Handle: RePEc:pal:stachp:978-1-137-54209-0_3
    DOI: 10.1057/9781137542090_3
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pal:stachp:978-1-137-54209-0_3. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.palgrave.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.