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URS Methodology - A Tool for Stimulation of Economic Growth by Innovations

Kulikowski R.

Bulletin of the Polish Academy of Sciences. Technical Sciences

2002

Vol. 50, Nr 1

79--92

The paper introduces a new methodology for evaluation of innovations. It is based on the notation of utility, depending on the capital rate of return and safety. Safety is definded as the notion complementary to the value at research risk (VaR). The value as safety (VaS) is and increasing function of reasearch and development period (T). The methodology enables one to derive the optimum utility maximizing T and a ranking of innovation projects. The stimulation of economic growth by innovation is also studied.