Skip to main content

The use of options theory to value research in the service sector

Buy Article:

$43.00 plus tax (Refund Policy)

This paper examines the practicalities of applying real options theory to valuing research in the service sector, where the relationship between research and subsequent business benefit is less easily discerned than in most previous applications of options theory in, e.g. the pharmaceutical industry. The paper uses a compound options model, the Geske model, based on a three‐phase lifecycle consisting of research, development and deployment. This model was applied in a case study within the e‐commerce area to extract key messages for R&D managers relating to different value drivers. However, the case study emphasized the need to understand the relationship between the research activity and the subsequent revenue stream, and to be able to demonstrate the extent to which the former is necessary for the latter.
No References
No Citations
No Supplementary Data
No Article Media
No Metrics

Document Type: Original Article

Affiliations: British Telecommunications plc, Adastral Park, Martlesham Heath, UK

Publication date: 2001-04-01

  • Access Key
  • Free content
  • Partial Free content
  • New content
  • Open access content
  • Partial Open access content
  • Subscribed content
  • Partial Subscribed content
  • Free trial content
Cookie Policy
Cookie Policy
Ingenta Connect website makes use of cookies so as to keep track of data that you have filled in. I am Happy with this Find out more