JOURNAL ARTICLE

The key importance of spending on research and development in Formula One.

  • Published In: Managerial & Decision Economics, 2024, v. 45, n. 1. P. 70 1 of 3

  • Database: Business Source Ultimate 2 of 3

  • Authored By: Loník, Ivan; Kotrba, Vojtěch 3 of 3

Abstract

This paper analyzes the impact of budget strategy on Formula One team success in the World Constructors Championship using data from 11 seasons (2010–2020) before the budget cap. It demonstrates that budget strategy positively affects standings, points, podium finishes, and race completion. The motivation to achieve better results is explained through success‐related returns. Cost–benefit analysis and regression models were employed, revealing a significant influence of budget strategy on team success. Investing in research and development emerges as the most effective approach to enhance the success rate. [ABSTRACT FROM AUTHOR]

Additional Information

  • Source:Managerial & Decision Economics. 2024/01, Vol. 45, Issue 1, p70
  • Document Type:Article
  • Subject Area:Sports and Leisure
  • Publication Date:2024
  • ISSN:0143-6570
  • DOI:10.1002/mde.3983
  • Accession Number:174372868
  • Copyright Statement:Copyright of Managerial & Decision Economics is the property of Wiley-Blackwell and its content may not be copied or emailed to multiple sites without the copyright holder's express written permission. Additionally, content may not be used with any artificial intelligence tools or machine learning technologies. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

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