Searching for rational effect factors of R&D value within a real options framework

Chun Yao Tseng, Ming Cheng Wu

Research output: Contribution to journalArticle

Abstract

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.

Original languageEnglish
Pages (from-to)92-103
Number of pages12
JournalInternational Journal of Technology, Policy and Management
Volume10
Issue number1-2
DOIs
Publication statusPublished - 2010 Jun 1

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Sensitivity analysis
Managers
Electronic equipment
Testing
Factors
Real options
Panel data
Empirical analysis
Empirical results
Risk-free rate
Empirical methods
Evaluation model
Patents

All Science Journal Classification (ASJC) codes

  • Business, Management and Accounting(all)
  • Engineering(all)

Cite this

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Searching for rational effect factors of R&D value within a real options framework. / Tseng, Chun Yao; Wu, Ming Cheng.

In: International Journal of Technology, Policy and Management, Vol. 10, No. 1-2, 01.06.2010, p. 92-103.

Research output: Contribution to journalArticle

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