An Optimal Control Model of Product Improvement R and D
RAND CORP SANTA MONICA CA
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A model is constructed to determine how much to put into a particular R and D program at any time. The problem is formulated in the following way given a production function for technical change one seeks a path which maximizes the present discounted value of the difference between its benefits and costs. The model is developed within the context of a program in which an organization attempts to improve the performance of one of its systems subject to an arbitrary fiscal constraint which limits the rate of R and D spending on that system.
- Administration and Management
- Operations Research