Technological Aspects of Project Selection

Project selection is a process fraught with uncertainties. Technological uncertainty is one of the major contributors to the total risk and its reduction has been a subject of many attempts to provide the decision maker with better decision material. In the following paper, we summarise three cases representing different technological contents of technology transfer projects. The possible technological changes and the sensitivity of project profitability to them is presented and analysed. A methodological approach involving convolution of the technological risk into a conventional economical project analysis has been developed and is evaluated in this paper. In particular, the aspect of trimming the analysis procedure into an efficient routine is discussed.