Many academics and managers have confirmed the ability of real- option models to capture the value of flexibility in relation to R&D projects. However, few studies have focused on constructing empirical methods and testing their application to real circumstances. This study not only presents a sensitivity analysis of the R&D evaluation model, but also establishes an empirical analysis to examine these relationships using panel data on 101 Taiwanese electronics firms from 1991 to 2002. Based on the sensitivity analyses and empirical results, we conclude that the R&D value increases with increasing R&D capital, patent lifetime and risk-free rate.
|Number of pages||12|
|Journal||International Journal of Technology, Policy and Management|
|Publication status||Published - 2010 Jun 1|
All Science Journal Classification (ASJC) codes
- Business, Management and Accounting(all)