Innovative R&D and Optimal Investment under Uncertainty in High-Tech Industries : An Implication for Emerging Economies

In order to continue on the path to convergence with advanced countries, emerging countries need to strengthen their research capabilities. Often they try to do this through the development of strategic industries. The objective of this paper is to contribute to the debate on the effectiveness of po...

Full description

Bibliographic Details
Main Authors:	Tsai, Yingyi, Lin, Justin Yifu, Kurekova, Lucia
Format:	Journal Article
Language:	EN
Published:	2012
Subjects:	Production Cost Capital, Total Factor, and Multifactor Productivity Capacity D240 Capital Budgeting Fixed Investment and Inventory Studies G310 Industrial Policy Sectoral Planning Methods L520 Industry Studies: Manufacturing: General L600 Technological Change Research and Development: General O300
Online Access:	http://hdl.handle.net/10986/4986

id	okr-10986-4986
recordtype	oai_dc
spelling	okr-10986-49862021-04-23T14:02:20Z Innovative R&D and Optimal Investment under Uncertainty in High-Tech Industries : An Implication for Emerging Economies Tsai, Yingyi Lin, Justin Yifu Kurekova, Lucia Production Cost Capital, Total Factor, and Multifactor Productivity Capacity D240 Capital Budgeting Fixed Investment and Inventory Studies G310 Industrial Policy Sectoral Planning Methods L520 Industry Studies: Manufacturing: General L600 Technological Change Research and Development: General O300 In order to continue on the path to convergence with advanced countries, emerging countries need to strengthen their research capabilities. Often they try to do this through the development of strategic industries. The objective of this paper is to contribute to the debate on the effectiveness of policies aimed at the development of strategic industries in emerging economies. The paper develops a three-phase model for product innovation with capital investment under uncertainty to study the investment decisions of a manufacturer in an industry facing a volatile market demand for new inventions. The findings demonstrate the importance of interactions between market structure, a firm's market power and the associated cost of adjustment. The paper draws out implications for emerging economies with regard to policies striving to develop strategic industries in sectors such as semiconductors and information technology. 2012-03-30T07:30:42Z 2012-03-30T07:30:42Z 2009 Journal Article Research Policy 00487333 http://hdl.handle.net/10986/4986 EN http://creativecommons.org/licenses/by-nc-nd/3.0/igo World Bank Journal Article
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	EN
topic	Production Cost Capital, Total Factor, and Multifactor Productivity Capacity D240 Capital Budgeting Fixed Investment and Inventory Studies G310 Industrial Policy Sectoral Planning Methods L520 Industry Studies: Manufacturing: General L600 Technological Change Research and Development: General O300
spellingShingle	Production Cost Capital, Total Factor, and Multifactor Productivity Capacity D240 Capital Budgeting Fixed Investment and Inventory Studies G310 Industrial Policy Sectoral Planning Methods L520 Industry Studies: Manufacturing: General L600 Technological Change Research and Development: General O300 Tsai, Yingyi Lin, Justin Yifu Kurekova, Lucia Innovative R&D and Optimal Investment under Uncertainty in High-Tech Industries : An Implication for Emerging Economies
relation	http://creativecommons.org/licenses/by-nc-nd/3.0/igo
description	In order to continue on the path to convergence with advanced countries, emerging countries need to strengthen their research capabilities. Often they try to do this through the development of strategic industries. The objective of this paper is to contribute to the debate on the effectiveness of policies aimed at the development of strategic industries in emerging economies. The paper develops a three-phase model for product innovation with capital investment under uncertainty to study the investment decisions of a manufacturer in an industry facing a volatile market demand for new inventions. The findings demonstrate the importance of interactions between market structure, a firm's market power and the associated cost of adjustment. The paper draws out implications for emerging economies with regard to policies striving to develop strategic industries in sectors such as semiconductors and information technology.
format	Journal Article
author	Tsai, Yingyi Lin, Justin Yifu Kurekova, Lucia
author_facet	Tsai, Yingyi Lin, Justin Yifu Kurekova, Lucia
author_sort	Tsai, Yingyi
title	Innovative R&D and Optimal Investment under Uncertainty in High-Tech Industries : An Implication for Emerging Economies
title_short	Innovative R&D and Optimal Investment under Uncertainty in High-Tech Industries : An Implication for Emerging Economies
title_full	Innovative R&D and Optimal Investment under Uncertainty in High-Tech Industries : An Implication for Emerging Economies
title_fullStr	Innovative R&D and Optimal Investment under Uncertainty in High-Tech Industries : An Implication for Emerging Economies
title_full_unstemmed	Innovative R&D and Optimal Investment under Uncertainty in High-Tech Industries : An Implication for Emerging Economies
title_sort	innovative r&d and optimal investment under uncertainty in high-tech industries : an implication for emerging economies
publishDate	2012
url	http://hdl.handle.net/10986/4986
_version_	1764393498310606848

Innovative R&D and Optimal Investment under Uncertainty in High-Tech Industries : An Implication for Emerging Economies

Similar Items