The aim of this study was to prepare an operational model and calculation model for profitability evaluation of the research and development (R&D) projects tothe Finnish Road Enterprise. One of the goals was also to develop profitabilityevaluation of the R&D projects and create information to decision situations.

The study consists of theory, interviews, operational model and calculation model. Theory part consists of selection methods and administration methods of projects. There were two groups of interviewees, experts and R&D managers. In this study are presented theoretical methods and empirical practices for profitability evaluation of the R&D projects. Practice of the profitability evaluation in the different progress of the R&D process is also described.

The main results of the study are an operationalmodel and calculation model of the R&D project's profitability evaluation in the Finnish Road Enterprise. Findings indicate that profitability evaluation of the projects could not only base on the economical methods. Qualitative methods and economical methods have to be in balance in the profitability evaluation. Interviews as empirical data clarified that multifaceted and continuous evaluation ensure profitability of the R&D projects.