TY - JOUR
T1 - Focal randomisation
T2 - An optimal mechanism for the evaluation of R&D projects
AU - Brezis, Elise S.
PY - 2007/12
Y1 - 2007/12
N2 - In most countries, governments intervene in the process of R&D by financing a substantial part of it. The mechanism employed for choosing the projects to be financed is a committee composed of experts who evaluate projects in their field of specialisation, and decide which ones should be funded. This method is conservative. Proposals for new ideas are too often rejected, and inventions are commonly thrown out of the set of potential projects. In this paper, I propose a mechanism that will allow less conformity: focal randomisation. This states that projects that are unanimously ranked at the top by all reviewers will be adopted. Projects perceived as valueless by all are rejected, while projects that are ranked differently are randomised. I compare the average return under the present and proposed mechanisms. I examine under which conditions this new method is preferable, and its consequences on economic growth.
AB - In most countries, governments intervene in the process of R&D by financing a substantial part of it. The mechanism employed for choosing the projects to be financed is a committee composed of experts who evaluate projects in their field of specialisation, and decide which ones should be funded. This method is conservative. Proposals for new ideas are too often rejected, and inventions are commonly thrown out of the set of potential projects. In this paper, I propose a mechanism that will allow less conformity: focal randomisation. This states that projects that are unanimously ranked at the top by all reviewers will be adopted. Projects perceived as valueless by all are rejected, while projects that are ranked differently are randomised. I compare the average return under the present and proposed mechanisms. I examine under which conditions this new method is preferable, and its consequences on economic growth.
UR - http://www.scopus.com/inward/record.url?scp=41449084069&partnerID=8YFLogxK
U2 - 10.3152/030234207x265394
DO - 10.3152/030234207x265394
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AN - SCOPUS:41449084069
SN - 0302-3427
VL - 34
SP - 691
EP - 698
JO - Science and Public Policy
JF - Science and Public Policy
IS - 10
ER -
