Measuring External R&D Programs
Measuring the value of external R&D programs can be challenging, especially those in the early stages of development. Air Products developed a rating tool to categorize and quantify the benefits of external R&D.[13] This tool rates ten attributes of each R&D program, using a numerical rating system. An overview of the project tool is given in Exhibit 9.6.
[13] Tao, J., and Brenner, M. “You Can Measure External Research Programs,” Research–Technology Management, May–June 2001, pp. 14–17.
| Project | Attributes | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| New Idea | New Expertise, Skills, Capabilities | Time Saved | New R&D $ Saved | Background IP Access | IP Generation | Long-Term Access to Capabilities | Program Emphasis | Commercial Impact | Technical Leverage | Total | |
| Project 1 | 3 | 3 | 3 | 3 | 3 | 3 | 3 | 3 | 5 | 5 | 34 |
| Project 2 | 2 | 2 | 3 | 3 | 3 | 2 | 2 | 3 | 5 | 3 | 28 |
| Project 3 | 2 | 2 | 3 | 2 | 3 | 3 | 2 | 1 | 3 | 3 | 24 |
| Project 4 | 1 | 2 | 3 | 2 | 3 | 2 | 1 | 2 | 2 | 2 | 20 |
The first eight attributes from “New Idea” to “Program Emphasis” are rated on a scale of one to three. The final two attributes, “Commercial Impact “and “Technical Leverage” are rated on a scale of one to five. Specific rating criteria are established for each attribute. The maximum rating for a given project is 34 points.
In addition to allowing an overall ranking of projects by total score, the tool allows grouping of projects based on any attribute. For example, the projects can be grouped by ranking in each attribute area (e.g., a grouping can be made of projects from highest to lowest commercial impact).
The tool was used to rate 42 external ...
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