Toole, Andrew A.; Czarnitzki, Dirk - Zentrum für Europäische Wirtschaftsforschung (ZEW) - 2008
Real options investment theory predicts current investment falls as uncertainty about market returns increases. In the … case of R&D investment, which is usually considered an irreversible form of investment, this effect should be quite … pronounced. This paper tests the real options prediction about the R&D investment-uncertainty relationship and further considers …