This paper aims to develop a strategic portfolio model for national IT R&D project selection, by objectively and strategically approaching a portfolio model that reflects both the scoring model's subjectivity and the financial model's simplicity. Many...
This paper aims to develop a strategic portfolio model for national IT R&D project selection, by objectively and strategically approaching a portfolio model that reflects both the scoring model's subjectivity and the financial model's simplicity. Many studies have also been actively conducted on scoring, and on financial and portfolio models for national IT R&D project selection. Nevertheless, most of these studies focus mainly on the development of evaluation techniques or on the proper allocation of resources, while its strategic aspects are not taken into consideration.
The portfolio model is frequently used by private companies to select a project effectively with a limited amount of resources. In particular, the most widely used R-R portfolio model was used in this paper. The four targets, new engine, challenge, question and never, were developed on the two axes of risk and return.
The present paper offers the value and mapping of smile-curve innovation, which is one of the national IT R&D strategies. In addition, weighing indexes, such as TRM and R&D performance plan, were used as an evaluation index to improve the objectivity of the present model. The 170 candidate information and communication research and development projects selected by the Ministry of Knowledge Economy (MKE) in 2009 were analyzed to examine the degree of Pearson's correlation, in order to test the model used in this paper. As a result, it was shown that there is a statistically significant correlation.
The model developed in this paper will contribute to maximizing the effective value of national IT R&D projects and in selecting the optimal project effectively. Moreover, this model will play an important part in the selection of R&D project and the allocation of resources in other areas.