R&D Projects Portfolio Selection by Developing a Hybrid DEA-BSC Model

Although investment in research and development (R&D) is a promising tool for technology centered organizations through achieving their objectives, resource constraints make organizations select between their pool of R&D projects. Evaluating and selecting research projects are decision maker's continual challenge referring to the importance of research projects alignment with organization strategic objectives. Although financial return is a common criterion applied in many cases of project evaluation, technologic and strategic alignment and project’s probability of success are critical criteria. Project portfolio management is a tool to identify and select projects and to determine to what extent they should be invested and which projects should be stopped in a certain period of time. In this study, the authors developed ae Data Envelopment Analysis-Balanced Scoreboard (DEA-BSC) model to support the R&D project portfolio evaluation and selection. The study describes the application of the developedproject portfolio selection method to research and development (R&D) projects of the National Iranian Gas Company (NIGC). The R&D project portfolio selection results were evaluated and validate by an expert panel of gas industry.