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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    6,110 Downloads   9,545 Views   Citations


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.

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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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