Abstract

R & D has lately become a part of information system. However, it has primarily remained to be for individual activities. Consequently, private firms need to construct a separate strategy of R & D in future. Specially, enterprises are required to produce the investment strategy system in many areas of R & D policy. Against these backgrounds, one of the most important purposes of this study is, first, to create a useful model for R & D investment and activities that would become the basis for the information system. Second, through that model, the study tries to make sure that the R & D investment will influence the sales. In validating, the paper has simulated the model in seven different companies of Japan. It has calculated the Stock of Technological Knowledge for the fourteen-year period from 1985 to 1999. The model has also computed sales and checked the outcomes against the actual open data by referring to a statistical analysis. In the end, R & D Investment Model, which this paper proposes, would help to introduce the information system of investment strategy for different enterprises. It also assists business administrators or R & D managers to make accurate and appropriate decisions of their investments for fundamental technologies.

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