National R&D project selection and risk sharing for commercialization in decision analyst's viewpoint

Abstract

The national R\&D project selection becomes complicated by multiple competing objectives. These characteristics are taken into account by eliciting a multiattribute value function from members of group to quantify their preferences for outcomes. However, since the budget is limited, the allocation involves tradeoffs between competing objectives. The nation hopes to license the developed technology to the corresponding industries for commercial exploitation. However, commercial process is owing to lots of risk, the industries have to grope the possibility of forming a partnership in order to reduce the risk. Therefore, a joint venture between industries will be needed to share the risk. The mainframe of this study is composed of two part. One is the selection on national R\&D projects and the other is the evaluation for joint venture based on risking sharing concept. In the former case, we evaluate national R\&D projects on the basis of multiattribute and combine the results into a single measure of project that reflects the member``s preference toward outcomes. In the latter case, we consider a joint venture between firms. In the other words, we determine the ratio of investment size. This is solved by risk sharing. However, the theoretical methods that we suggest here may be true of the situation that is pure.