McCullouch, B. (2019). INDOT research program benefit cost analysis—Return on investment for projects completed in FY 2018 (Joint Transportation Research Program Publication No. FHWA/IN/JTRP-2019/31). West Lafayette, IN: Purdue University. https://doi.org/10.5703/1288284317111
This project produced a financial analysis of INDOT’s research projects completed in 2018, as requested annually by the Governor’s office. This analysis uses the approach of calculating net present values created by the implementation of research project to determine benefit cost ratios and return on the research investment. The return on investment (ROI) is limited to projects where benefits and costs are quantifiable. Additionally, the 2018 ROI is combined with those from 2017 and 2016 to create a rolling average.
In FY 2018 twenty-two research projects were completed. Out of this number two projects produced outcomes that could be classified as Agency savings and one as User savings. For the other 19 projects, two have not been implemented and the remaining 17 are producing qualitative benefits. Agency savings produced a return on research investment of 10 to 1 while User savings return is 0.7 to 1. For the combined last three analysis years (2016–2019) the ROI for Agency and User savings are calculated to be the same at 21 to 1.
financial analysis, return on investment, cost benefit, research benefits, quantitative benefits
Joint Transportation Research Program
Indiana Department of Transportation
West Lafayette, IN
Date of this Version