RAND Corporation

Project RAND

RAND was created after individuals in the War Department, the Office of Scientific Research and Development, and industry began to discuss the need for a private organization to connect operational research with research and development decisions. The immediate impetus for the creation of RAND was a conversation in September 1945 between General Henry H. "Hap" Arnold and Douglas executive Franklin R. Collbohm. Both men were deeply worried that ongoing demobilization meant the federal government was about to lose direct control of the vast amount of American scientific brainpower assembled to fight World War II.

As soon as Arnold realized Collbohm had been thinking along similar lines, he said, "I know just what you're going to tell me. It's the most important thing we can do." With Arnold's blessing, Collbohm quickly pulled in additional people from Douglas to help, and together with Donald Douglas, they convened with Arnold two days later at Hamilton Army Airfield to sketch out a general outline for Collbohm's proposed project.

Douglas engineer Arthur Emmons Raymond came up with the name Project RAND, from "research and development". Collbohm suggested that he himself should serve as the project's first director, which he thought would be a temporary position while he searched for a permanent replacement for himself. He later became RAND's first president and served in that capacity until his retirement in 1967.

On 1 October 1945, Project RAND was set up under special contract to the Douglas Aircraft Company and began operations in December 1945. In May 1946, the Preliminary Design of an Experimental World-Circling Spaceship was released.

RAND

By late 1947, Douglas Aircraft executives had expressed their concerns that their close relationship with RAND might create conflict of interest problems on future hardware contracts. In February 1948, the chief of staff of the newly created United States Air Force approved the evolution of Project RAND into a nonprofit corporation, independent of Douglas.

On 14 May 1948, RAND was incorporated as a nonprofit corporation under the laws of the State of California and on 1 November 1948, the Project RAND contract was formally transferred from the Douglas Aircraft Company to RAND. Initial capital for the spin-off was provided by the Ford Foundation.

Since the 1950s, RAND research has helped inform United States policy decisions on a wide variety of issues, including the space race, the Vietnam War, the U.S.–Soviet nuclear arms confrontation, the creation of the Great Society social welfare programs, the digital revolution, and national health care. In the 1970s, New York City used RAND's computer models to determine which fire stations to close. Most of the closed stations were in relatively poor areas, such as South Bronx or Lower East Side.

RAND contributed to the doctrine of nuclear deterrence by mutually assured destruction (MAD), developed under the guidance of then-Defense Secretary Robert McNamara and based upon their work with game theory. Chief strategist Herman Kahn also posited the idea of a "winnable" nuclear exchange in his 1960 book On Thermonuclear War. This led to Kahn's being one of the models for the titular character of the film Dr. Strangelove, in which RAND is spoofed as the "BLAND Corporation".

The research of RAND stems from its development of systems analysis. Important contributions are claimed in space systems and the United States' space program, in computing and in artificial intelligence. RAND researchers developed many of the principles that were used to build the Internet. RAND also contributed to the development and use of wargaming.

Current areas of expertise include: child policy, law, civil and criminal justice, education, health (public health and health care), international policy/foreign policy, labor markets, national security, defense policy, infrastructure, energy, environment, business and corporate governance, economic development, intelligence policy, long-range planning, crisis management and emergency management-disaster preparation, population studies, regional studies, comparative studies, science and technology, social policy, welfare, terrorism and counterterrorism, cultural policy, arts policy, and transportation.

Defense and national security

During the Cold War, RAND researchers contributed to the development of nuclear strategy concepts such as deterrence theory and mutually assured destruction. In recent years, RAND has analyzed military readiness, force modernization, and counterterrorism strategies. For example, one study examined the effectiveness of counterinsurgency operations in Iraq and Afghanistan.

Healthcare and public health

RAND designed and conducted one of the largest and most important studies of health insurance between 1974 and 1982. The RAND Health Insurance Experiment, funded by the then–U.S. Department of Health, Education and Welfare, established an insurance corporation to compare demand for health services with their cost to the patient.