In the suggested paper an attempt to combine two different aspects of innovative activity which are known as product and process innovations is made. The main objective of the paper is to demonstrate the importance of interdependence between these two types of innovative activity through means...

In this paper it is illustrated how option-based valuation can be used to determine whether and when a firm should patent and adopt an Innovation if the arrival time of competitors is stochastic. Four distinct strategies are derived: Apply for a patent without introducing the new technology...