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The Method of Real Options to Encourage the R & D Team
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Journal of Service Science and Management·Volume 03 (2010)·Pages 235–240·Published 29 June 2010·DOI10.4236/jssm.2010.32029
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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.
KeywordsThe High-Risk R &ampampampD ProjectReal Option IncentiveR &ampampampD Team
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