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Internal Research & Development Markets

Traditionally resources for R and D projects are allocated via planning and budgeting procedures, evaluation methods and hierarchical decision-committees. This book presents resource allocation via internal markets as an alternative to such hierarchical decision procedures. Internal R and D markets can help to overcome the weaknesses of traditional hierarchical structures, since they are characterised by short communication and decision procedures and thus contribute to the reduction of information asymmetries.

On the one hand there is a budget for the research and preliminary development
activities. On the other hand there is a budget for serial developments and
variants. The research and preliminary development budget is financed by the
group ...