This paper presents an R & D planning system (RDPS) that consists of (1) a multistage model for formulating projects and (2) a "reward" model for selecting projects. The system is based on a combination of decisionmaking and operations research approaches. Using the system concept, the R & D process is defined in three interrelated terms -- mission, goals, and objectives -- that serve as the radix for generating projects in multistages. The project selection model is used to select projects that maximize expected total "reward" within budgetary limitations. The proposed RDPS can be used to concentrate and coordinate research and development activities. (Author)