The study of risk warning and controlling of R&D outsourcing: based on BP neural network

Research and development (R&D) outsourcing is discussed within the context of risk management theory. Three aspects of R&D outsourcing risk are identified and examined: customers, facilitators, and the trading process. A risk-warning model is presented which provides strategic change management for minimising and managing R&D outsourcing risks. This model is based on the British Petroleum (BP) neural network. Both the firm outsourcing, R&D development and the firm providing the service can benefit from the application of the risk-warning model. The study advances not only the control of outsourcing R&D risk, but it also improves the final product R&D outsourcing.