Technological Areas C1 C2 C3 C4 C5

CHIMI is a firm specialized in processing metals.
Its products are used in sectors such as electronic, aeronautic, automobile, lightening and
biomedical. The R&D activity has for CHIMI a strategic importance, it employees around 90 people and each year it has allocated a budget of
around 10% of the total revenues. The budget is realised in a time span of 3 years, and for the period 2018-2020 it has been assumed to allocate
to the new projects around 300000 €/year. The technological areas relevant for CHIMI are shown in Tab 1.
Technological Areas C1 C2 C3 C4 C5
Average incidence on R&D costs 40% 5% 15% 20% 20%
Position with respect to competitors Strong leader Leader Tenable Tenable
Strategic Relevance High Low Low Medium Medium
Appropriability Low High Medium Medium High
Collaboration with Industrial Partners To be evaluated Active Active To be evaluated Active
Tab 1: CHIMI technological areas
For the year 2017, the manager of the R&D has suggested to activate 3 new projects, concerning 3 different technological areas.
Project P1. Technological area C2

It is a project to be developed in 3 phases: basic research (1 year), applied research (2 years), development (2 years). The potential marketing is
in the automotive and aeronautic sectors. Looking at the trend of these two sectors: the expected revenues are highly uncertain, with a variability
of +10%, -15%.
Costs basic research 167000 €/ year (1 year) Prob success 60%

Costs applied research 180000 €/ year (2 year) Prob success 70%
Costs of development 260000 €/ year (2 year) Prob success 90%
Revenues attended on average (for 7 years) 350000 €/ year
Production Costs 30% of the revenue
Tab 2: costs and revenues P1
It is a project of incremental innovation, strongly related to the success of a project already in the pipeline, called PA3. PA3 is an enabler for P2:
CHIMI cannot start the development phase of P2, if PA3 has not been completed with success. P2 can exploit an owned patent, still valid for 3
years. After these three years the imitation of competitors cannot be avoided. The commercial success of P2 is guarantee: it is deployed
according to specific clients’ needs.
Costs applied research 120000 €/years (1 years)

Costs of development 340000 €/years (1 years)
Revenues attended on average 220000 €/years
(for 5 years)
Production Costs 28% revenue
Tab 3: Costs and Revenue P2

It is a project related to a growing technology, with several uncertain applications. However, the ambits are still not well defined. Consequently,
the costs are highly uncertain, because highly related to the application sectors. It is assumed a variability of the revenues around 25% and of
costs around 15%. The project could participate to a European call (co-financing of 45% of all the costs of R&D, to not be returned). In this case,
it is required to create a consortium with at least 3 industrial partners of 3 different countries and 2 universities. Nevertheless, it is not known the
probability of success of this call. It is known that in general the success of the European calls is really low, around 5%.
Costs applied research 270000 €/ years (2 years)

Costs of development 260000 €/ years (2 years)
Revenues attended on average (for 6 years) 280000 €/ years
Production Costs 25% revenues
Tab 4: Revenues and Costs P3
The project already in the pipeline for CHIMI, already approved in 2017, are shown in table 5.
Project PA1 PA2 PA3 PA4 PA5 PA6 PA7 PA8 PA9
Technological C3 C3 C4 C2 C5 C1 C1 C4 C5
Areas
Time to be 3 5 1 2 2 3 1 4 1
completed
(Years)
Phase Basic Basic Development Development Applied Basic Development Basic Development
Research Research Research Research Research
Technical Medium Medium Really High High Low Medium High High Low
Risk
Commercial High Medium High Low Really Medium High Really Low
Risk Low High
Strategic High Medium High Medium Really High Medium High Really High
Relevance High
Economic Medium High Really High Really High High Medium High Really Medium
Relevance High
Total costs of Limited Very Wide Wide Limited Very Wide Limited Limited Limited Very Wide
R&D
Patent Granted Pending Pending No No No Granted Granted Pending
Application Automotive Biomedical Electronic Electronic Aeronautic Electronic Biomedical Electronic Automotive
Sectors
Tab 5: projects in pipeline

Technological Areas C1 C2 C3 C4 C5

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CHIMI is a firm specialized in processing metals.

Project P1. Technological area C2

Costs basic research 167000 €/ year (1 year) Prob success 60%

Costs applied research 120000 €/years (1 years)

Project P3. Technological area C1

Costs applied research 270000 €/ years (2 years)

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