THE SOURCE OF COMPARATIVE ADVANTAGE IN THE BIOTECHNOLOGY INDUSTRY: A REAL OPTIONS APPROACH

Sources of heterogeneity within the process of R&D investment, such as international differences in the maximum per-period rate of investment and level of regulatory uncertainty, offer a plausible explanation for US comparative advantage in biotechnology. Using dynamic stochastic simulation, the results presented in this paper suggest US biotechnology firms may initiate more R&D projects, innovate earlier and more rapidly, persevere longer in the face of mounting R&D costs, and successfully complete more R&D projects than European firms.


Issue Date:
1999
Publication Type:
Conference Paper/ Presentation
DOI and Other Identifiers:
Record Identifier:
https://ageconsearch.umn.edu/record/21508
PURL Identifier:
http://purl.umn.edu/21508
Total Pages:
14
Series Statement:
Selected Paper




 Record created 2017-04-01, last modified 2020-10-28

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