The aim of this study is to provide new theoretical insights and empirical evidence on the effect of market and technological uncertainty on the market valuation of a firm’s R&D capital. A set of hypotheses is developed adopting a real options logic and tested on a panel dataset of 290 manufacturing firms traded in the UK. Consistently with our theoretical model, we show that market and technological uncertainty have distinct effects on the valuation of R&D investments. The results have several important implications for resource allocation to R&D under uncertainty, which we discuss in the concluding section.

Uncertainty and the Market Valuation of R&D within a Real Options Logic / Oriani, Raffaele; Sobrero, M.. - In: STRATEGIC MANAGEMENT JOURNAL. - ISSN 0143-2095. - 29:(2008), pp. 343-361.

Uncertainty and the Market Valuation of R&D within a Real Options Logic

ORIANI, RAFFAELE;
2008

Abstract

The aim of this study is to provide new theoretical insights and empirical evidence on the effect of market and technological uncertainty on the market valuation of a firm’s R&D capital. A set of hypotheses is developed adopting a real options logic and tested on a panel dataset of 290 manufacturing firms traded in the UK. Consistently with our theoretical model, we show that market and technological uncertainty have distinct effects on the valuation of R&D investments. The results have several important implications for resource allocation to R&D under uncertainty, which we discuss in the concluding section.
Uncertainty and the Market Valuation of R&D within a Real Options Logic / Oriani, Raffaele; Sobrero, M.. - In: STRATEGIC MANAGEMENT JOURNAL. - ISSN 0143-2095. - 29:(2008), pp. 343-361.
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Utilizza questo identificativo per citare o creare un link a questo documento: http://hdl.handle.net/11385/3270
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