Abstract:
In order to reduce the risk of complete failure, research managers
often adopt a parallel strategy by simultaneously funding several R &
D activities and several research teams within each activity. The parallel
strategy requires the allocation of an available budget to a number of
R & D activities, the determination of the number of research teams
within each activity and the amount of funding they receive. We consider
a formulation of this problem as a nonlinear resource allocation problem
by Gerchak and Kilgour (1999), and present a sufficient condition as a
function of problem parameters, under which closed=form solutions to the
problem are obtained.