Book excerpt: The Research Analysis Corporation (RAC) has developed a quantitative resource allocation model designed to assist the manager of a major government research and development (R and D) program in evolving better strategies for the allocation of resources to R and D individual programs. This computer-based model (MEASURE I) permits rapid evaluation and comparison of alternative resource allocation strategies which offer the decision maker a wide range of choices in terms of costs, benefits, and other consequences. Having once established the relative worth of the program elements by means of the model, the R and D decision maker can perform an on-line examination of the consequences of alternative strategies and budgets to select that strategy which best meets his stated objectives. Unique features of this model include consideration of the broad spectrum of R and D from pure research to pre-production development. (Author).