Analysis on complexity of R&D project termination decision

During the process of R&D project, many unexpected changes and problems may emerge. Terminating an ongoing project that is not promising in time is important for a company. This paper attempts to explain why R&D project termination decision is so hard to make and execute. Also, both objective and subjective reasons are given. The objective reason is that termination decision is much complex than selection decision, and it is troublesome to identify the key discriminating factors in particular economic system, business and even different stage of the R&D project. Termination decision is difficult to be accepted by R&D project manager and the staff, which is the main subjective reason.