INNOVATIONOPTIONS · Valuing Innovation Options and Policy Flexibility Under Uncertainty
Horizon 2020 — Marie Skłodowska-Curie Actions
- Duration
- 2016-08-01 → 2019-07-31
- EU contribution
- €269,858
- Participants
- 2
- Scheme
- MSCA-IF-GF
Lines connect the coordinator with its partners.
Results in brief
Valuing Innovation Options and Policy Flexibility Under Uncertainty
Success in today’s knowledge economy depends on intangible assets (R&D, patents and licensing deals) and flexible innovative policies. The overall project objective was to contribute to Europe’s innovation and intangible investment efforts using real options analysis to address challenges posed by uncertainty and flexibility in innovation. Several issues were addressed: What makes innovation and policy more valuable under uncertainty? What is the role of uncertainty and competition? When should one compete or collaborate? How much are innovation assets worth at different stages? On what terms should one license a technology? Do these terms reflect fairly the development options embedded in licensing agreements? What evidence supports these valuations? How should one design flexible innovation policies and manage innovation and policy risks? What is the impact of uncertainty and ambiguity on macroeconomic outcomes and policies? The project contributes to EC objectives and the literature on real options, innovation and policy developing novel ideas for the valuation, management and use of intangible assets, innovation options and policy flexibility and examining the role of uncertainty on policy outcomes. Scientific objectives focused on two areas discussed next.
Data: CORDIS, © European Union
Project objective
This proposal consists of a two-year outgoing phase (1.5 years at MIT and 6-month secondment at LUISS U. in Italy) and one-year re-integration phase at King’s College London. Following advanced innovation training, it aims to develop new ideas and frameworks based on real options theory to appraise innovation options and policy flexibility. Besides training/development and dissemination, the proposal will examine two research themes: (1) (First-year at MIT) Analyse flexibility in innovation and public policy under uncertainty. Examine flexible and modular design for robust corporate innovation and public policies to enable dealing proactively with policy risk. Analyse the strategic choice of when to pursue aggressive or exclusionary innovation strategies or cooperate in innovation, depending on market demand, volatility and comparative advantages;(2) (Second-year at MIT and LUISS) (a) Theoretical analysis of how to design optimal and fair licensing terms given who controls development and other options and (b) empirical investigation (secondment at LUISS) of multi-stage R&D and IP licensing deals (viewed as compound real options), applied to a proprietary biotech/pharma licensing deals database. This is of interest to European policymakers and in line with King’s and MIT’s innovation- and policy-oriented strategy connecting research to business and society.During re-integration (Third-year at King’s), an international conference, a public workshop and other outreach and dissemination activities will transfer the knowledge, experiences and insights to the European context.
Original text from CORDIS.
Participants
- KING'S COLLEGE LONDON · LondonCoordinatorUnited Kingdom
- MASSACHUSETTS INSTITUTE OF TECHNOLOGY · CambridgeUnited States
Links
Data: CORDIS, © European Union