Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/104835
Authors: 
Reiß, Ariane
Year of Publication: 
1997
Series/Report no.: 
Tübinger Diskussionsbeiträge 116
Abstract: 
In this paper it is illustrated how option-based valuation can be used to determine whether and when a firm should patent and adopt an Innovation if the arrival time of competitors is stochastic. Four distinct strategies are derived: Apply for a patent without introducing the new technology right away, patent the Innovation and invest immediately, initiate the new project without patent protection, or defer the decision. It is shown how competition and the level of patent fee determines the strategy to be pursued and the maximum amount of R&D expenditures.
Document Type: 
Working Paper

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