The Value of Innovation in Nanotechnology

Result code in IS VaVaI

<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F68407700%3A21630%2F17%3A00316727" target="_blank" >RIV/68407700:21630/17:00316727 - isvavai.cz</a>

Result on the web

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DOI - Digital Object Identifier

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Result language

angličtina

Original language name

The Value of Innovation in Nanotechnology

Original language description

This paper addresses the highly current topic of using quantitative economic methods to support rational investment decision-making in the domain of technological innovation. Such investments are characterized by a high degree of exogenous and endogenous uncertainty combined with complex feedbacks, making conventional capital budgeting techniques inadequate. It introduces a comprehensive valuation model developed for the Shyman (Sustainable Hydrothermal Manufacturing of Nanomaterials) project, which researched and implemented new technologies in nanomaterial production and application. This represents a highly innovative and complex industry in all life cycle stages, making it a perfect candidate for research. The model combines various analytical methods, including a recursive form of life cycle costing (LCC), as well as statistical simulation (Monte Carlo) and real options, and addresses valuation from the perspective of a new end-product, as well as that of the production facility investor. A high Net Advantage to Innovating (NAI) has been identified in the industry. This result is strongly biased in favour of end-product innovators. Nevertheless, the hydrothermal synthesis-based nanomaterial production process benefits from its high degree of flexibility, i.e. option to switch, with a significant value premium arising due to outsize dynamics and uncertainty in the nanoindustry. Experience gained through this research can be extended to other cases of value-based analysis related to innovation.

Czech name

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Czech description

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Type

J_imp - Article in a specialist periodical, which is included in the Web of Science database

CEP classification

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OECD FORD branch

50206 - Finance

Project

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Continuities

I - Institucionalni podpora na dlouhodoby koncepcni rozvoj vyzkumne organizace

Publication year

2017

Confidentiality

S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Name of the periodical

Engineering Economics

ISSN

1392-2785

e-ISSN

2029-5839

Volume of the periodical

28

Issue of the periodical within the volume

5

Country of publishing house

LT - LITHUANIA

Number of pages

7

Pages from-to

535-541

UT code for WoS article

000422839700006

EID of the result in the Scopus database

2-s2.0-85042617323