TITLE:
The Method of Real Options to Encourage the R & D Team
AUTHORS:
Junfeng Gao, Lan Jiang
KEYWORDS:
The High-Risk R & D Project, Real Option Incentive, R & D Team
JOURNAL NAME:
Journal of Service Science and Management,
Vol.3 No.2,
June
29,
2010
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.