The request to deliver this paper called for a presentation on the methodology of research and development (R and D) resource allocation in a form suitable for a lay audience. As a pragmatist who believes that tools only have a value if they can be used to improve the way in which the job is done, I would very much prefer to be speaking on practical case studies. Nevertheless, I will attempt to stick to the given remit and describe some of the approaches to R and D resource allocation that are available, and to comment on their practical usefulness based on the experiences of myself and my colleagues at the Programmes Analysis Unit.