According to the significance and charaters of R&D project termination decision and basic principle of pattern identification, the paper discussed general pattern identification proceduces about R&D project termination decision and proposed a new mode identification method of R&D project termination decision based on the property that the Wavelet can smooth datum and adapt to the changes of function. Furthmore, the dialation and shifts which are the parameters of wavelet function and the weight of neural network structure ars calculated by conjugate gradient algorithm in term s of the latest mean squared energy criterion．The study not only overcome the difficulties and drawbacks in the existing method of R&D project termination decision，but provide also a new theoretical basis for following management of R＆D projects and a set of operational decision method and procedure for specific decision makers or government departments．