Integrating Real-options Reasoning and the Innovation Diffusion Curve for Decision Making under Uncertainty
نویسنده
چکیده
Dynamic innovation processes are combined for complex technological advances bring about decision-making under uncertainty. This paper reflects the case of strategic decision-making on a technology development project using real options reasoning. Like investment options in financial markets real options introduce explicit risk measures for possible alternatives. Managerial decisions on innovation processes, however, as well entail understanding the inherent characteristics and environments risks of an innovation option. The paper therefore explores conceptual integration of options reasoning with innovation diffusion theory for the modelling of complex innovation processes that better masters the inherent uncertainty of innovation processes.
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