R&D portfolio selection with project interactions and risk

To deal with project interactions and risk which are not well solved in the existing research during the process of the R&D portfolio selection, the paper presents an R&D portfolio selection model for independent projects considering the actual phase requirements of resource limit and benefit while portfolio risk is taken as an important constraint measured by the combination of individual project's entropy. With this model as foundation, a general R&D portfolio selection model, which covers benefit interactions, technology interactions and resources interactions among multi-projects, is established step by step. Illustrated examples is given to show the difference of selected R&D portfolio when project interactions are taken into account or not.