In this article we develop a model to analyze patent-protected R&D investment projects when there is (imperfect) competition in the development and marketing of the resulting product. The competitive interactions that occur substantially complicate the solution of the problem since the decision...

The real options investment theory shows that greater uncertainty about market revenues reduces current Ramp;D investment by increasing the value of waiting. This paper presents empirical evidence that patent protection mitigates the effect market uncertainty on Ramp;D investment

We develop a new approach to dealing with real options problems with uncertain maturity. This type of situation is typical for Ramp;D investments and mine or oil exploration projects. These types of projects are characterized by significant on-going investment costs until completion. Since time...

Using real options game models, we consider the characterization of strategic equilibria associated with an asymmetric R&D race between an incumbent firm and an entrant firm in the development of a new innovative product under market and technological uncertainties. The random arrival time of...

We consider an important class of research and development (R&D) investments in public and private entities that require selection from a large number of proposals such that: (1) the potential monetary value of the proposals is not a first-order factor in the selection; and (2) the investments...

This paper studies R&D investment decisions of a firm facing the threat of new technology entry and subject to technical uncertainty. We distinguish four scenarios: inevitable entry, entry deterrence, entry blockade, and non-credible entry threat. The entry threat stimulates the incumbent to...