With the immense evolution of technology and consumers’ maturing anticipations, novel products’ development becomes the primary way that companies adapt to survive in the growing international contention. Creation or innovation can allow the organization to stand one step forward of the competition and to conduct the competition in the direction it selects. We examined the evaluation system of real options approach to a biomimicry R&D project together with conventional R&D and environmental R&D projects. This model considers uncertainties of investment cost and cash flow of the new product in each project. We find that investment on environmental and biomimicry technologies will achieve promising expectations in Asian area when certain environmental demands increase.
All Science Journal Classification (ASJC) codes
- Economics and Econometrics
- Management, Monitoring, Policy and Law