Real Options and Intellectual Property
Capital Budgeting Under Imperfect Patent Protection
E-Book
Real Options and Intellectual Property
Capital Budgeting Under Imperfect Patent Protection
Over the last years, due to intensive competition in the knowledge economy, legal aspects surrounding intellectual property (IP) rights - including litigation and settlement - have continuously gained in importance. Correspondingly, professional IP management has become an indispensable element of successful value-based management (VBM) in research-intensive firms.
With this text, the author proposes an integrated approach to patent risk and capital budgeting in pharmaceutical research and development (R and D), developing an option-based view (OBV) of imperfect patent protection, which draws upon contingent-claims analysis, stochastic game theory, as well as novel numerical methods. Bridging a widening gap between recent advances in the theory of financial analysis and current challenges faced by pharmaceutical companies, the text re-initiates a discussion about the contribution of quantitative frameworks to value-based R and D management.
With this text, the author proposes an integrated approach to patent risk and capital budgeting in pharmaceutical research and development (R and D), developing an option-based view (OBV) of imperfect patent protection, which draws upon contingent-claims analysis, stochastic game theory, as well as novel numerical methods. Bridging a widening gap between recent advances in the theory of financial analysis and current challenges faced by pharmaceutical companies, the text re-initiates a discussion about the contribution of quantitative frameworks to value-based R and D management.
1;Preface;5 2;Contents;7 3;1 Introduction;11 3.1;1.1 Goal and Motivation;11 3.2;1.2 Method and Outline;16 4;Patenting Under Uncertainty;17 4.1;2 Patent Protection, the Firm, and the Economy;18 4.1.1;2.1 Patents as a Strategic Resource;18 4.1.2;2.2 Patents as an Incentive Mechanism;23 4.1.3;2.3 Recent Developments;25 4.2;3 Uncertainty, Irreversibility, and Flexibility;30 4.2.1;3.1 Capital Budgeting;30 4.2.2;3.2 Numerical Methods;36 4.3;4 Patent Protection in the Pharmaceutical Industry;67 4.3.1;4.1 Financial and Strategic Challenges;67 4.3.2;4.2 Risk in Pharmaceutical Patents;69 4.3.3;4.3 Implications for Capital Budgeting;73 5;Exogenous Patent Risk;79 5.1;5 Introduction and Related Work;80 5.2;6 Patents as Investment Opportunities;84 5.2.1;6.1 Static Investment Policy;84 5.2.2;6.2 Dynamic Investment Policy;86 5.3;7 Patent Risk as Jumps in the Underlying Process;121 5.3.1;7.1 Single-Stage and Single-Factor Models;121 5.3.2;7.2 Two-Stage and Two-Factor Models;148 5.4;8 From Business Shifts to Jump Processes;183 5.5;9 Preliminary Conclusion;186 6;Endogenous Patent Risk;188 6.1;10 Introduction and Related Work;189 6.2;11 Patent Risk as an Option to Litigate;191 6.2.1;11.1 Formalization;191 6.2.2;11.2 Analysis;196 6.2.3;11.3 Variations and Extensions;219 6.3;12 Preliminary Conclusion;224 6.4;13 Conclusion;226 6.4.1;13.1 Summary;226 6.4.2;13.2 Suggestions for Future Research;227 7;Appendices;228 7.1;A Proofs;229 7.1.1;A.1 Proposition 6;229 7.1.2;A.2 Proposition 11;231 7.1.3;A.3 Proposition 13;232 7.1.4;A.4 Proposition 14;234 7.2;B Numerical Methods;236 7.2.1;B.1 Binomial and Multinomial Trees;236 7.2.2;B.2 Monte Carlo Simulation;242 8;References;245 9;Index;268 10;List of Abbreviations;272 11;List of Symbols;276
Baecker, Philipp N.
| ISBN | 9783540482642 |
|---|---|
| Artikelnummer | 9783540482642 |
| Medientyp | E-Book - PDF |
| Auflage | 2. Aufl. |
| Copyrightjahr | 2007 |
| Verlag | Springer-Verlag |
| Umfang | 282 Seiten |
| Sprache | Englisch |
| Kopierschutz | Digitales Wasserzeichen |
