Real R & D Options

Real R & D Options

by Dean Paxson
Released January 2003
Publisher(s): Butterworth-Heinemann
ISBN: 9780080497976

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Book description

Real R&D options are among the earliest modelled real options, with now ten primary practical uses: general R&D planning, planning R&D in stages, evaluating test information, new product development timing, operations, abandonment, risk sharing, market funding, industry strategy and regulation.

This book was partly motivated by requests to identify and develop real option models for R&D in telecommunications, petroleum technology and biotechnology. Nine new models cover information and implementation costs, analytical solutions for mean reverting, or fat tailed revenues, endogenous learning and exogenous and experiential shocks, American sequential options, and innovator advantages. Four new applications include forward start development options, exploration options, innovation with information costs, and innovator's real values with changing market share.

R&D directors and researchers will find several uses for these models:
· general R&D planning
· evaluating test information
· new product development timing
· risk sharing
· industry strategy and regulation

*A practical guide to how organizations can use Real Option techniques to effectively value research and development by companies
*Provides a rigorous theoretical underpinning of the use of Real Option techniques
*Real Options applications are orientated around the economies of North America, Europe and Asia, for an international perspective

Table of contents

  1. Cover
  2. Real R&D Options
  3. Copyright Page
  4. Contents
  5. List of contributors
  6. Chapter 1. Introduction to real R&D options (1/2)
  7. Chapter 1. Introduction to real R&D options (2/2)
  8. Chapter 2. On irreversibility, sunk costs and investment under incomplete information (1/4)
  9. Chapter 2. On irreversibility, sunk costs and investment under incomplete information (2/4)
  10. Chapter 2. On irreversibility, sunk costs and investment under incomplete information (3/4)
  11. Chapter 2. On irreversibility, sunk costs and investment under incomplete information (4/4)
  12. Chapter 3. Investment under economic and implementation uncertainty (1/4)
  13. Chapter 3. Investment under economic and implementation uncertainty (2/4)
  14. Chapter 3. Investment under economic and implementation uncertainty (3/4)
  15. Chapter 3. Investment under economic and implementation uncertainty (4/4)
  16. Chapter 4. An options approach to new product development: experience from Philips Electronics (1/4)
  17. Chapter 4. An options approach to new product development: experience from Philips Electronics (2/4)
  18. Chapter 4. An options approach to new product development: experience from Philips Electronics (3/4)
  19. Chapter 4. An options approach to new product development: experience from Philips Electronics (4/4)
  20. Chapter 5. Analytic solutions for the value of the option to (dis)invest (1/5)
  21. Chapter 5. Analytic solutions for the value of the option to (dis)invest (2/5)
  22. Chapter 5. Analytic solutions for the value of the option to (dis)invest (3/5)
  23. Chapter 5. Analytic solutions for the value of the option to (dis)invest (4/5)
  24. Chapter 5. Analytic solutions for the value of the option to (dis)invest (5/5)
  25. Chapter 6. Student’s distribution and the value of real options (1/4)
  26. Chapter 6. Student’s distribution and the value of real options (2/4)
  27. Chapter 6. Student’s distribution and the value of real options (3/4)
  28. Chapter 6. Student’s distribution and the value of real options (4/4)
  29. Chapter 7. Real R&D options with endogenous and exogenous learning (1/4)
  30. Chapter 7. Real R&D options with endogenous and exogenous learning (2/4)
  31. Chapter 7. Real R&D options with endogenous and exogenous learning (3/4)
  32. Chapter 7. Real R&D options with endogenous and exogenous learning (4/4)
  33. Chapter 8. Approximate valuation of real R&D American sequential exchange options (1/4)
  34. Chapter 8. Approximate valuation of real R&D American sequential exchange options (2/4)
  35. Chapter 8. Approximate valuation of real R&D American sequential exchange options (3/4)
  36. Chapter 8. Approximate valuation of real R&D American sequential exchange options (4/4)
  37. Chapter 9. Optimal exploration investments under price and geological–technical uncertainty: a real options model (1/4)
  38. Chapter 9. Optimal exploration investments under price and geological–technical uncertainty: a real options model (2/4)
  39. Chapter 9. Optimal exploration investments under price and geological–technical uncertainty: a real options model (3/4)
  40. Chapter 9. Optimal exploration investments under price and geological–technical uncertainty: a real options model (4/4)
  41. Chapter 10. Investments in technological innovations under incomplete information (1/4)
  42. Chapter 10. Investments in technological innovations under incomplete information (2/4)
  43. Chapter 10. Investments in technological innovations under incomplete information (3/4)
  44. Chapter 10. Investments in technological innovations under incomplete information (4/4)
  45. Chapter 11. The effect of first-mover’s advantages on the strategic exercise of real options (1/5)
  46. Chapter 11. The effect of first-mover’s advantages on the strategic exercise of real options (2/5)
  47. Chapter 11. The effect of first-mover’s advantages on the strategic exercise of real options (3/5)
  48. Chapter 11. The effect of first-mover’s advantages on the strategic exercise of real options (4/5)
  49. Chapter 11. The effect of first-mover’s advantages on the strategic exercise of real options (5/5)
  50. Chapter 12. Leader/follower real value functions if the market share follows a birth/death process (1/4)
  51. Chapter 12. Leader/follower real value functions if the market share follows a birth/death process (2/4)
  52. Chapter 12. Leader/follower real value functions if the market share follows a birth/death process (3/4)
  53. Chapter 12. Leader/follower real value functions if the market share follows a birth/death process (4/4)
  54. Chapter 13. R&D investment decision and optimal subsidy (1/5)
  55. Chapter 13. R&D investment decision and optimal subsidy (2/5)
  56. Chapter 13. R&D investment decision and optimal subsidy (3/5)
  57. Chapter 13. R&D investment decision and optimal subsidy (4/5)
  58. Chapter 13. R&D investment decision and optimal subsidy (5/5)
  59. Chapter 14. Optimal R&D investment tax credits under mean reversion return (1/4)
  60. Chapter 14. Optimal R&D investment tax credits under mean reversion return (2/4)
  61. Chapter 14. Optimal R&D investment tax credits under mean reversion return (3/4)
  62. Chapter 14. Optimal R&D investment tax credits under mean reversion return (4/4)
  63. Chapter 15. Genzyme Biosurgery: a virtual real R&D option case (1/4)
  64. Chapter 15. Genzyme Biosurgery: a virtual real R&D option case (2/4)
  65. Chapter 15. Genzyme Biosurgery: a virtual real R&D option case (3/4)
  66. Chapter 15. Genzyme Biosurgery: a virtual real R&D option case (4/4)
  67. Chapter 16. Selective review of real R&D options literature (1/7)
  68. Chapter 16. Selective review of real R&D options literature (2/7)
  69. Chapter 16. Selective review of real R&D options literature (3/7)
  70. Chapter 16. Selective review of real R&D options literature (4/7)
  71. Chapter 16. Selective review of real R&D options literature (5/7)
  72. Chapter 16. Selective review of real R&D options literature (6/7)
  73. Chapter 16. Selective review of real R&D options literature (7/7)
  74. Index (1/2)
  75. Index (2/2)

Product information

  • Title: Real R & D Options
  • Author(s): Dean Paxson
  • Release date: January 2003
  • Publisher(s): Butterworth-Heinemann
  • ISBN: 9780080497976