Understanding R&D value creation with organizational simulation

被引：14

作者：

Bodner, Douglas A. ^{[1
]}

Rouse, William B. ^{[1
]}

机构：

[1] Georgia Inst Technol, H Milton Stewart Sch Ind & Syst Engn, Tennenbaum Inst, Atlanta, GA 30332 USA

来源：

SYSTEMS ENGINEERING | 2007年 / 10卷 / 01期

基金：

美国国家科学基金会;

关键词：

R&D; value creation; options pricing; budget allocation; organizational simulation; REAL OPTIONS; VALUATION;

D O I：

10.1002/sys.20064

中图分类号：

T [工业技术];

学科分类号：

08 ;

摘要：

Research and development functions are fundamental drivers of value creation in technology-based enterprises. Successful R&D is a function of invention and R&D management. This paper studies R&D management issues from the perspective of their effect on value creation. The particular issues studied are: (i) How does one attach a value to a particular proposed R&D activity, and (ii) how does one allocate funding over the various stages comprising an R&D value stream? Organizational simulation is used in an experiment to determine the value creation effectiveness of alternative investment policies. Experimental results indicate the superiority of valuation methods (options pricing vs. traditional net present value approaches) and budget allocation strategies under differing conditions and differing value-oriented performance measures. An application of the model to R&D in the forest products industry is presented. (C) 2007 Wiley Periodicals, Inc. Syst Eng 10: 64-82, 2007.

引用

页码：64 / 82

页数：19

共 61 条

[1]

Abramowitz M., 1964, Handbook of Mathematical Functions with Formulas, Graphs, and Mathematical Tables, National Bureau of Standards Applied Mathematics Series, V55, DOI DOI 10.1119/1.15378

[2] Justifying electronic banking network expansion using real options analysis [J].

Benaroch, M ;

Kauffman, RJ .

MIS QUARTERLY, 2000, 24 (02) :197-225

[3] Selecting project portfolios by optimizing simulations [J].

Better, Marco ;

Glover, Fred .

Engineering Economist, 2006, 51 (02) :81-97

[4] PRICING OF OPTIONS AND CORPORATE LIABILITIES [J].

BLACK, F ;

SCHOLES, M .

JOURNAL OF POLITICAL ECONOMY, 1973, 81 (03) :637-654

[5] Using simulation to analyze R&D value creation [J].

Bodner, DA ;

Rouse, WB ;

Pennock, MJ .

PROCEEDINGS OF THE 2005 WINTER SIMULATION CONFERENCE, VOLS 1-4, 2005, :1906-1913

[6]

BODNER DA, 2005, P 2005 IND ENG RES C

[7] Valuation of technology using "real options" [J].

Boer, FP .

RESEARCH-TECHNOLOGY MANAGEMENT, 2000, 43 (04) :26-30

[8] Real options and product life cycles [J].

Bollen, NPB .

MANAGEMENT SCIENCE, 1999, 45 (05) :670-684

[9] Real options analysis and strategic decision making [J].

Bowman, EH ;

Moskowitz, GT .

ORGANIZATION SCIENCE, 2001, 12 (06) :772-777

[10] Monte Carlo methods for security pricing [J].

Boyle, P ;

Broadie, M ;

Glasserman, P .

JOURNAL OF ECONOMIC DYNAMICS & CONTROL, 1997, 21 (8-9) :1267-1321

← 1 2 3 4 5 6 7 →