CAPITAL RATIONING
The allocation of a finite quantity of resources over different possible uses.
“Developing innovative new products and services is a expensive and time consuming. It is also extremely risky – most studies have indicated that the vast majority of development projects fail.” This is when capital rationing is put into place. Rationalizing which projects are worth investing in and which aren’t. But what if you can almost have guaranteed results in R&D, what if an organization could hire someone who constantly provides results. What would be the return on investment in such a scenario?
Warner Babcock Institute is an “academic style laboratory but [financed] like a contract R&D business.” Within this organization every project contributes to another organization’s research and development with a high yield of results, patents and new technologies. The institute whole heartedly implements green technologies and behaviors as part of its organizational culture. Most of their work revolves around biology and chemistry, but they have inventions including a less energy intensive method of developing solar panels.
http://pubs.acs.org/cen/science/88/8840sci1.html
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