R&D Project Portfolio Selection in a Bi-Level Investment Environment: A Case Study from a Research Institute in China

This paper focuses on a R&D project portfolio selection problem in a bi-level organization. In the organization, the considered project portfolio can be supported by two levels of funds, that is company fund and department funds. There-into, company fund can support all projects while department funds only support projects from a specified department. Hence, in contrast to prior studies, two levels of budget constraints are considered in project selection. To solve this problem, a multi-objective mixed integer programming model which considers three objectives (i.e., maximization of average comprehensive evaluated score, maximization of total expected profit and minimization of average project risk) is proposed. Finally, a practical R&D project selection case from a research institute in Western China is discussed, and the efficiency of the proposed model is evaluated.