Loading [a11y]/accessibility-menu.js
Technology Trajectories and the Selection of Optimal R&D Project Sequences | IEEE Journals & Magazine | IEEE Xplore
Scheduled Maintenance: On Monday, 27 January, the IEEE Xplore Author Profile management portal will undergo scheduled maintenance from 9:00-11:00 AM ET (1400-1600 UTC). During this time, access to the portal will be unavailable. We apologize for any inconvenience.

Technology Trajectories and the Selection of Optimal R&D Project Sequences


Abstract:

Given a set of R&D projects drawing on the same underlying technology, a technology trajectory refers to the order in which projects are executed. Due to their technologi...Show More

Abstract:

Given a set of R&D projects drawing on the same underlying technology, a technology trajectory refers to the order in which projects are executed. Due to their technological interdependence, the successful execution of one project can increase a firm's technological capability, and help to efficiently and effectively develop other projects from this set. In this paper, we present a model for determining the optimal sequence for performing such projects. Based on Huchzermeier and Loch's real-option value model, we demonstrate that accounting for interproject learning and discount rates has: 1) a positive effect on the maximum option value that different project sequences can achieve; and 2) the maximum value of the technology trajectory is particularly sensitive to the selection of the first project.
Published in: IEEE Transactions on Engineering Management ( Volume: 61, Issue: 4, November 2014)
Page(s): 669 - 680
Date of Publication: 04 September 2014

ISSN Information:


References

References is not available for this document.