The Decision of Enterprises during the Process of Technological Innovation Diffusion Based on Real Option Theory

The Decision of Enterprises during the Process of Technological Innovation Diffusion Based on Real Option Theory

Based on real option theory, the article analyses the decision-making of enterprises during the process of technological innovation diffusion under an uncertain circumstance. Under the assumption that the returns of enterprises follow geometric Brownian motion, the article firstly estimates the tra...

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Main Author: Guozhong Yang
Format: Article
Language:English
Published: EDP Sciences 2014-05-01
Series:SHS Web of Conferences
Subjects:
technological innovation
technological innovation diffusion
real option
geometric brownian motion
Online Access:http://dx.doi.org/10.1051/shsconf/20140701004
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spelling doaj-62ce23f1799244d4a692b80eeb5db6f22021-04-02T13:56:55ZengEDP SciencesSHS Web of Conferences2261-24242014-05-0170100410.1051/shsconf/20140701004shsconf_icmetm2014_01004The Decision of Enterprises during the Process of Technological Innovation Diffusion Based on Real Option TheoryGuozhong Yang Based on real option theory, the article analyses the decision-making of enterprises during the process of technological innovation diffusion under an uncertain circumstance. Under the assumption that the returns of enterprises follow geometric Brownian motion, the article firstly estimates the transition value of imitating technology innovators and the average latency of imitation, then it analyses the influence of every parameter on the diffusion process. It can be concluded that both the market demand and the rate have significant effects on the diffusion rate of innovative technology.http://dx.doi.org/10.1051/shsconf/20140701004technological innovationtechnological innovation diffusionreal optiongeometric brownian motion
collection DOAJ
language English
format Article
sources DOAJ
author Guozhong Yang
spellingShingle Guozhong Yang
The Decision of Enterprises during the Process of Technological Innovation Diffusion Based on Real Option Theory
SHS Web of Conferences
technological innovation
technological innovation diffusion
real option
geometric brownian motion
author_facet Guozhong Yang
author_sort Guozhong Yang
title The Decision of Enterprises during the Process of Technological Innovation Diffusion Based on Real Option Theory
title_short The Decision of Enterprises during the Process of Technological Innovation Diffusion Based on Real Option Theory
title_full The Decision of Enterprises during the Process of Technological Innovation Diffusion Based on Real Option Theory
title_fullStr The Decision of Enterprises during the Process of Technological Innovation Diffusion Based on Real Option Theory
title_full_unstemmed The Decision of Enterprises during the Process of Technological Innovation Diffusion Based on Real Option Theory
title_sort decision of enterprises during the process of technological innovation diffusion based on real option theory
publisher EDP Sciences
series SHS Web of Conferences
issn 2261-2424
publishDate 2014-05-01
description Based on real option theory, the article analyses the decision-making of enterprises during the process of technological innovation diffusion under an uncertain circumstance. Under the assumption that the returns of enterprises follow geometric Brownian motion, the article firstly estimates the transition value of imitating technology innovators and the average latency of imitation, then it analyses the influence of every parameter on the diffusion process. It can be concluded that both the market demand and the rate have significant effects on the diffusion rate of innovative technology.
topic technological innovation
technological innovation diffusion
real option
geometric brownian motion
url http://dx.doi.org/10.1051/shsconf/20140701004
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