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The Method of Real Options to Encourage the R & D Team

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DOI: 10.4236/jssm.2010.32029    5,863 Downloads   9,190 Views   Citations

ABSTRACT

In some projects, the R & D appears to be a failure, and according to traditional methods of encouragement motivation, it is hard to get any awards for the R & D team. But there is a valuable option implied in it. This article discusses the method of real options to encourage R & D team when the enterprises can not achieve the desired economic benefit in the case of high-risk project or the immature market. The process of method includes: Identify the real option type of high-risk projects, Design the incentive mechanism and Design specific exercise ways.

Conflicts of Interest

The authors declare no conflicts of interest.

Cite this paper

J. Gao and L. Jiang, "The Method of Real Options to Encourage the R & D Team," Journal of Service Science and Management, Vol. 3 No. 2, 2010, pp. 235-240. doi: 10.4236/jssm.2010.32029.

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