A combined technique using SEM and TOPSIS for the commercialization capability of R&D project evaluation

Abstract

There is a high risk of R&D based innovation being commercialized, especially in the innovation transfer process which is a concern to many entrepreneurs and researchers. The purpose of this research is to develop the criteria of R&D commercialization capability and to propose a combined technique of Structural Equation Modelling (SEM) and Technique for Order Preference by Similarity to Ideal Solution (TOPSIS) for R&D project evaluation. The research utilized a mixed-method approach. The first phase comprised a qualitative study on commercialization criteria development though the survey research of 272 successful entrepreneurs and researchers in all industrial sectors in Thailand. The data was collected with a structured questionnaire and analyzed by SEM. The second phase was involved with SEM-TOPSIS technique development and a case study of 45 R&D projects in research institutes and incubators for technique validation. The research results reveal that there were six criteria for R&D project commercialization capability, these are arranged according to the significance; marketing, technology, finance, non-financial impact, intellectual property, and human resource. The holistic criteria is presented in decreasing order on the ambiguous subjectivity of the fuzzy-expert system, to help with effectively funding R&D and to prevent a resource meltdown. This study applies SEM to the relative weighting of hierarchical criteria. The TOPSIS approach is employed to rank the alternative performance. An integrated SEM-TOPSIS is proposed for the first time and applied to present R&D projects shown to be effective and feasible in evaluating R&D commercialization capacity.

Keywords

• Commercialization capability
• R&D evaluation criteria
• Project selection
• SEM
• MCDM
• AHP
• TOPSIS