Search results for "R&D alliance"

R&D alliances timing under uncertainty: from theory toward experiments

2015

There is a growing awareness that managers have cognitive biases when making investments decisions under uncertainty. There is evidence of deviation from the predictions derived using normative models, such as real options models. The proposed research sheds light on the importance of integrating normative models with experimental methods in order to predict and explain such cognitive limitations. To this aim, starting from a real options model dealing with alliance timing decisions, we propose a simple design of an experiment, that can been used to test some of the fundamental insights of real options theory in the context of R&D alliances.

Early or late R&D inbound alliance? The impact on knowledge creation

2015

In the R&D supply chain firms can agree an inbound alliance at different times along the process; this decision will impact the supplier’s effort and then the innovation achieved at the end of the agreement. Supplier’s effort is assumed as non-observable then it cannot be constrained contractually. Earlier contracts will ask for a greater cumulated effort although they offer risk-sharing opportunity; later contracts see supplier with a stronger exante bargaining power position, due to shorter (and then less risky) contract length and experience acquired in the previous period in her own. With the hypotheses of maximum innovation value achieved when both partners exert the maximum affordable…

EVALUATING R&D ALLIANCES UNDER UNCERTAINTY: A REAL OPTIONS APPROACH