A Decision Process Model of R&D Resource Allocation in Hierarchical Organizations

A mathematical model is presented which incorporates many descriptive characteristics of decentralized R while R&D goals and/or budgets and associated levels are passed downward. The eventual purpose of this research is to construct a simulator capability suitable for experimentation concerning coordination in a decentralized resource allocation process involving R&D projects. Such a capability would be an important tool for analyzing existing or proposed decision processes and would be useful for policy analysis at the level of both the firm and the federal government. An illustrative experiment is discussed.