R&D as an option on market introduction
Article Abstract:
A study was conducted on the application of an option pricing model for setting the budget of research and development (R&D) projects. The option value indicated the maximum size of the R&D budget from an economic point of view. The value of the potential benefits to market new products based on advanced R&R was estimated in an appropriate way beyond conventional methods. Also, the option approach can be used in practice for transparent communication and open discussions with relevant product divisions or business units.
Publication Name: R & D Management
Subject: Business, general
ISSN: 0033-6807
Year: 1998
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On allocating R&D budgets among and within projects
Article Abstract:
A study was conducted on the allocation of resources to research and development projects. The objectives of maximizing the weighted sum of the probabilities that the best team in each project achieves a threshold, the weighted sum of the expected number of teams attaining their threshold and the weighted sum of expected achievement levels were considered. Results showed that the nature of the objectives has substantial impact on the optimal allocation.
Publication Name: R & D Management
Subject: Business, general
ISSN: 0033-6807
Year: 1998
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An option approach to the new product development process: a case study at Philips Electronics
Article Abstract:
A case study at Philips Electronics formed part of research into the product development process as a series of (real) options with declining uncertainty over time. It was found that using the same decision tool for various projects in different stages of new product development makes it possible to achieve a more advanced comparison between all projects concerned.
Publication Name: R & D Management
Subject: Business, general
ISSN: 0033-6807
Year: 2001
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