The Hidden Surplus From Research Joint Ventures: An Application Of Systems Reliability Theory

Abstract

The paper’s aim is two fold: (a) to model some key features of the research process as a multi-component system, as understood by the mathematical theory of systems reliability; and (b) to apply the resulting model to Research Joint Ventures, showing that a potentially very large surplus can be realized purely by organizing research efficiently, i.e. even without any changes in R&D investment.optimal organization, systems reliability, Research Joint Ventures, parallel and series systems, majorization, organizational surplus.