On the Failure of R&D Projects
File(s)
Author(s)
Link, AN
Wright, M
Type
Journal Article
Abstract
There is an extensive literature on the success/failure of firm-funded R&D projects, but growing policy interest focuses on publicly funded R&D projects. We discuss this literature, which builds on a long stream of research of which Albert Rubenstein was a prime investigator, and use the literature to motivate the theoretical and empirical parts of the paper. Using data from 1878 Phase II R&D projects funded through the U.S. Small Business Innovation Research (SBIR) program, of which 624 had been discontinued prior to technical completion, we provide for the first time quantitative findings on the success/failure of publicly funded firm-performed R&D projects. Using a single-equation qualitative choice model, we find that prior R&D experience with the technology funded by SBIR projects, the amount of the SBIR award, and having a female as a principle investigator, other factors held constant, are all negatively related to the probability of project failure. In contrast, firm size is positively associated with project failure. We did not find evidence that human capital, experiential knowledge embodied in the firm conducting the R&D, or university involvement in the R&D project affected the probability of project failure. We discuss the implications of these findings for practice, policy, and further research.
Date Issued
2015-11-01
Date Acceptance
2015-02-14
Citation
IEEE Transactions on Engineering Management, 2015, 62 (4), pp.442-448
ISSN
0018-9391
Publisher
IEEE
Start Page
442
End Page
448
Journal / Book Title
IEEE Transactions on Engineering Management
Volume
62
Issue
4
Copyright Statement
© 2015 IEEE. Personal use of this material is permitted. Permission from IEEE must be obtained for all other uses, in any current or future media, including reprinting/republishing this material for advertising or promotional purposes, creating new collective works, for resale or redistribution to servers or lists, or reuse of any copyrighted component of this work in other works.
Subjects
Social Sciences
Science & Technology
Technology
Business
Engineering, Industrial
Management
Business & Economics
Engineering
Innovation
project failure
public sector
R&D
Small Business Innovation Research (SBIR)
GENDER-DIFFERENCES
SUCCESS
FIRM
ENTREPRENEURSHIP
PERFORMANCE
TECHNOLOGY
INNOVATION
RESOURCES
SPINOFFS
SURVIVAL
Publication Status
Published