1. R&D Policy in Private Sector SECURITY AND DEFENCE R&D MANAGEMENT: POLICY, CONCEPTS AND MODELS Nedko Tagarev UNWE/DNRS – PhD Student

2. INTRODUCTION The main focus of this presentation is the life–cycle of a small, subcontracted company, established with the sole purpose of carrying out a certain R&D project. The presented process is found through a research, conducted in FOUR private sector companies, executing various R&D projects.

3. 1. Forms of Policy Inactive – the product does not require R&D activities Inactive – the product does not require R&D activities Active – there is a problem to be addressed and R&D activities are required Active – there is a problem to be addressed and R&D activities are required

4. 2. Main Reasons for Policy to be Active It is a matter of “Life or Death” for the company; It is a matter of “Life or Death” for the company; The Profit from creating the R&D policy is worth the trouble. The Profit from creating the R&D policy is worth the trouble.

5. 3. Companies and Projects Huge corporations – project portfolios; Huge corporations – project portfolios; Middle sized and small companies attached to the big ones – subcontracting; Middle sized and small companies attached to the big ones – subcontracting; Small companies created for one project – outsourcing. Small companies created for one project – outsourcing.

6. 4. Structure of the process 4.1. Project > R&D Policy > Strategy > Profit 4.2. Creation of the “Project company” > Product > Service to the Product > Death of the Product > Death of the Company 4.3. Aim – State of the art product => R&D activities throughout the whole project

7. 5. HR during such R&D projects The main resource for this projects are human resources. The main resource for this projects are human resources. The main goal of these kind of projects is capacity building. The main goal of these kind of projects is capacity building. The whole process depends on the personnel and their qualities! The whole process depends on the personnel and their qualities! The process is important for the economic security of the company The process is important for the economic security of the company

8. HR process 1rst year 1. The head of the company (qualities): Relative or close friend to the owner; Relative or close friend to the owner; Doesn’t have any idea about the technology or the final product; Doesn’t have any idea about the technology or the final product; Very friendly person. Very friendly person. 2. Accountant. 3. Employees 2-4 persons: Familiar with the technology; Familiar with the technology; Have a vision about what the final product will be; Have a vision about what the final product will be; Experienced. Experienced.

9. HR Process 2nd and 3th year After the creation of the technology for producing the final product. Some of the employees can be changed. Some of the employees can be changed. Self education of the employees begins. Self education of the employees begins.

10. HR Process 3th and 4th year The Final Product is created 1. More personnel has been changed; 2. 10% to 33% of the personnel are now working on the project, the others use the time to improve their abilities in science;

11. HR Process 4th and 5th year 1. 10% - 50% of the personal Serve to the product. 2. Begins the process of hiring personal, not connected with the project. 3. The end of the 5th year the product is sold and the company is dead.

12. Thank you for your attention!