The option value of advanced R & D
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Enrico Pennings; Onno Lint
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Article
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1997
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Elsevier Science
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English
โ 876 KB
Existing tools for making R&D investment decisions cannot properly capture the option value in R&D. Since many new products are identified as failures during the R & D stages, the possibility of refraining from market introduction may add a significant value to the NPV of the R&D project. ]'his pape