Pennings, Enrico; van Bekkum, van Bekkum, S.; Smit, … - Erasmus Research Institute of Management (ERIM), … - 2009
This paper shows that the conditionality of investment decisions in R&D has a critical impact on portfolio risk, and implies that traditional diversification strategies should be reevaluated when a portfolio is constructed. Real option theory argues that research projects have conditional or...