nep-ppm New Economics Papers
on Project, Program and Portfolio Management
Issue of 2017‒07‒02
four papers chosen by
Arvi Kuura
Tartu Ülikool

  1. Valuation of an R&D project with three types of uncertainty By Michi Nishihara
  2. Toward an Assessment of the U.S. Small Business Innovation Research (SBIR) Program at the National Institutes of Health By Link, Albert; Scott, John
  3. Dragon versus Elephant: A Comparative Study of Chinese and Indian Aid in the Pacific By Denghua Zhang and Hemant Shivakumar
  4. Mechanisms and Tools for the Formation of Effective Project Teams in the Executive Authorities of the Subjects of the Russian Federation By Sinyagin, Yury; Sheburakov, I.B.

  1. By: Michi Nishihara (Graduate School of Economics, Osaka University)
    Abstract: This paper develops an R&D decision-making model in the real options framework. The model is generic enough to capture three types of uncertainty in an R&D project, namely, uncertainty of research duration and costs, market value of technology, and a competitor fs technology development. I derive analytical solutions, which help practitioners and researchers to evaluate various cases of R&D investment. Further, by analyzing the model with a wide range of parameter values, I reveal the following effects of the three types of uncertainty on R&D investment: Higher uncertainty of research duration and costs, unlike market value uncertainty, speeds up investment, especially combined with a higher risk of competition. The investment timing can be U-shaped in the strength of competition because of the trade-off between the preemptive investment effect and the decreased project value effect. These results can account for empirical findings about the uncertainty-investment relation in industries with high R&D intensity and severe competition.
    Keywords: Capital budgeting; Decision analysis; Risk; R&D; Real options
    JEL: G31 G33
    Date: 2017–06
  2. By: Link, Albert (University of North Carolina at Greensboro, Department of Economics); Scott, John (Dartmouth College)
    Abstract: The Small Business Innovation Development Act of 1982, which established the Small Business Innovation Research (SBIR) program, is arguably the hallmark policy initiative in the United States to support technology development and commercialization in small firms. While scholars have studied this program in detail, there has yet to be a systematic assessment of how well it is meeting its legislated goals of stimulating technological innovation and increasing private sector commercialization. We use a unique set of data on projects funded by the National Institutes of Health (NIH) SBIR program to assess the extent to which these program goals are being met. We find that, relative to a counterfactual control group, NIH can be characterized as supporting, on average, the development of high commercialization risk technologies, and we suggest that this finding aligns with the goals of the SBIR program and may in fact be for the common weal.
    Keywords: SBIR program; technology; innovation; commercial risk
    JEL: O31 O38
    Date: 2017–06–05
  3. By: Denghua Zhang and Hemant Shivakumar
    Abstract: The growing scale of development assistance programs of China and India has attracted increased global attention. Research on their aid to the Pacific Island Countries, however, is largely missing. Whether their aid programs in the Pacific region are similar or significantly different—in terms of aim and scope—deserves investigation. Also, current literature on Chinese and Indian trilateral cooperation—a relatively new aid modality—is almost non-existent. Based on archival analysis and the authors' interviews in China, India and across the region over 2014–2016, this article provides a comparative analysis of Chinese and Indian aid to the Pacific island countries. It argues that Chinese and Indian aid in the Pacific are heterogeneous in a number of ways. In addition, China has been actively piloting trilateral cooperation in the Pacific, while no such projects have taken place from India who has only begun looking more closely at the region.
    Keywords: foreign aid, trilateral aid cooperation, China, India, Pacific Islands Countries
    Date: 2017–04–17
  4. By: Sinyagin, Yury (Russian Presidential Academy of National Economy and Public Administration (RANEPA)); Sheburakov, I.B. (Russian Presidential Academy of National Economy and Public Administration (RANEPA))
    Abstract: Large-scale and ambitious tasks of the country's development can be achieved only on condition of effective activity of state authorities. One of the ways to increase their effectiveness is the approach based on large-scale implementation of project management. Since the project activity in public authorities has not yet become widespread, a scientific justification of the effectiveness of this direction is required, the identification of mechanisms and the development of tools for the formation of teams that can effectively solve project tasks. Unlike functional and management teams, project teams as a concept and as a new reality only appear in the public sphere. The work defines the mechanisms and tools for the formation of effective teams for the solution of tasks of various types by the executive authorities of the subjects of the Russian Federation.
    Date: 2017–06

This nep-ppm issue is ©2017 by Arvi Kuura. It is provided as is without any express or implied warranty. It may be freely redistributed in whole or in part for any purpose. If distributed in part, please include this notice.
General information on the NEP project can be found at For comments please write to the director of NEP, Marco Novarese at <>. Put “NEP” in the subject, otherwise your mail may be rejected.
NEP’s infrastructure is sponsored by the School of Economics and Finance of Massey University in New Zealand.