This calculator allows corporate boards, executives, and risk committees to determine their optimal R&D allocation. Inputs include percentages allocated to short, medium, and long projects, along with the return and probability of success.
The first display illustrates where the current allocation lies within the range of all possible outcomes for the different portfolio, return, and risk profiles. The second display shows how the current allocation compares to both the optimal allocation and 100% core allocation over 1, 3, 5, and 10 years – illustrating the trade-off between short- and long-term risk and return.