This paper investigates how competition and firm size affect the relationship between market uncertainty and R …&D investment. We use an intuitively appealing measure of firm-specific uncertainty along with panel data to show that firms invest … less in current R&D as uncertainty about market returns increases. The effect of firm-specific uncertainty on R …

The real options investment theory shows that greater uncertainty about market revenues reduces current R&D investment … market uncertainty on R&D investment. …

imperfections. Drawing on the theory of investment under uncertainty, this paper argues that public R&D subsidies increase business … R&D investment through an additional mechanism – mitigating the effects of market uncertainty on R&D investment in … markets for new products. Using a sample of German manufacturing firms, we show that market uncertainty indeed reduces R …

Real options investment theory predicts current investment falls as uncertainty about market returns increases. In the … pronounced. This paper tests the real options prediction about the R&D investment-uncertainty relationship and further considers … mitigate firm-specific uncertainty and stimulate current R&D investment. Our empirical results support both the prediction of …