The Portfolio Selection Problem
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All companies that engage in new product development (NPD) face the important problem of selecting a project portfolio. A statement by the head of the R&D division of AstraZeneca, a big pharmaceutical company, illustrates that portfolio selection under budget constraints is difficult: “AstraZeneca has to rein in some of its most promising drug candidates due to the lack of resources to develop them simultaneously” (Financial Times, 16 October 2000). Choosing the NPD portfolio practically determines the firm’s strategy for the medium-term future, and is the responsibility of the senior managers of the firm (Roussel et al. 1991, Cooper et al. 1998).
KeywordsPortfolio Selection Portfolio Selection Problem Admission Policy Portfolio Problem Project Prioritization
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