Tremendous papers have analyzed the investment project of R&D for high-technology industry when either assuming the market demand is uncertain or the R&D itself is at risk. In this study, we use real option approach to construct a model, which can take market demand and R & D uncertainties into considerations simultaneously to analyze the investment project values for high-technology industry. We carry out simulations to detect how the key parameters, such as R&D and market demand volatility, affect the values of investment projects. Since our model is very general, it is able to provide more accurate project analysis than those existed in the literature. Hence, our model can help the financial managers of high-technology industry to make better project analysis for their firms.
英文關鍵字
Real Option, R&D, Market Demand, High-Technology Industry
