A thesis submitted in partial fulfillment o f the requirements for the degree of Master of engineering, School of Engineering and Technology

Thesis (M.Eng.) - Asian Institute of Technology, 1992

The purpose of this study is to develop a model useful for the selection and budget allocation of R&D project under budgetary and systematic constraints . Integrating the R&D and business strategy is the basic idea of this study . The concept of short-term, mid- term, and long- term R&D project " family " is introduced based on the different objectives of the business at different phase. It is assumed that the projects which are belong to the same project family have the same objectives, same technological characteristics and similar duration. Analytic Hierarchy Process(AHP) is used in the gross budget allocation of short-term, mid-term and long-term project families . Binary non-linear integer program is used to find optimal funding policy for short-term R&D projects. Vector maximization program is developed to find all the nondominated solutions for mid- term R&D projects . Tradeoff of budgetary constraints between short-term, and mid-term projects is made. After t hat, MAVT model is developed to finally find the best way to allocate t he budget to short-term and mid- term projects taking into consideration the multiple attribute nature of the problem. Finally, AHP is used again to rank the long-term projects. The rank of these alternatives will be the guideline of R&D manager s in practice. By using this developed model, a case study of Beijing Electronic Group Ltd. Co. is made.