R&D project evaluation: An integrated DEA and balanced scorecard approach

We present and demonstrate a multi-criteria approach for evaluating R&D projects in different stages of their life cycle. Our approach integrates the balanced scorecard (BSC) and data envelopment analysis (DEA) and develops an extended DEA model. The input and output measures for the integrated DEA–BSC model are grouped in “cards” which are associated with a “BSC for R&D projects”. The BSC is embedded in the DEA model through a hierarchical structure of constraints that reflect the BSC balance considerations. We illustrate the proposed approach with a case study involving an industrial research laboratory that selects and executes dozens of R&D projects every year.