The Public Sector R&d Enterprise ― A New Approach to Portfolio Valuation

The US government spends $30 billion per year on applied, non-defense research and development in fields like energy, health, transportation, agriculture, and the environment. Effective management of this investment is a prerequisite not only to addressing challenges like climate change and economic prosperity, but also to the wise stewardship of taxpayer money. The Public Sector R&D Enterprise combines a primer on how government R&D programs actually work with a sophisticated methodology for prospectively putting a dollar figure on the value of R&D investments before they are made. Using an integrated framework, this primer offers students and practitioners alike an accessible entry point to what can be a very complex R&D enterprise. The author presents and proves the feasibility of a new valuation methodology that allows program administrators to prospectively estimate the likely returns and potential risks of potential investments in R&D.

Peter Linquiti is Associate Professor at George Washington University, USA. where he teaches courses in environmental policy and policy analysis methods. His research focuses on interdisciplinary environmental analysis, valuation of government investments in new technologies, and adaptation to climate change. Linquiti previously served as Executive Vice President at ICF International, a global energy and environmental consulting firm.