Ebook: Real Options and Intellectual Property: Capital Budgeting Under Imperfect Patent Protection
Author: Dr. Philipp N. Baecker (auth.)
- Tags: Financial Economics, Finance /Banking, Technology Management, Game Theory/Mathematical Methods, Quantitative Finance, Operations Research/Decision Theory
- Series: Lecture Notes in Economics and Mathematical Systems 587
- Year: 2007
- Publisher: Springer-Verlag Berlin Heidelberg
- Edition: 1
- Language: English
- pdf
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.
Over recent 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.
Over recent 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.
Content:
Front Matter....Pages I-X
Introduction....Pages 1-6
Front Matter....Pages 7-7
Patent Protection, the Firm, and the Economy....Pages 9-20
Uncertainty, Irreversibility, and Flexibility....Pages 21-57
Patent Protection in the Pharmaceutical Industry....Pages 59-70
Front Matter....Pages 71-71
Introduction and Related Work....Pages 73-76
Patents as Investment Opportunities....Pages 77-113
Patent Risk as Jumps in the Underlying Process....Pages 115-176
From Business Shifts to Jump Processes....Pages 177-179
Preliminary Conclusion....Pages 181-182
Front Matter....Pages 183-183
Introduction and Related Work....Pages 185-186
Patent Risk as an Option to Litigate....Pages 187-219
Preliminary Conclusion....Pages 221-222
Conclusion....Pages 223-224
Back Matter....Pages 225-278
Over recent 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.
Content:
Front Matter....Pages I-X
Introduction....Pages 1-6
Front Matter....Pages 7-7
Patent Protection, the Firm, and the Economy....Pages 9-20
Uncertainty, Irreversibility, and Flexibility....Pages 21-57
Patent Protection in the Pharmaceutical Industry....Pages 59-70
Front Matter....Pages 71-71
Introduction and Related Work....Pages 73-76
Patents as Investment Opportunities....Pages 77-113
Patent Risk as Jumps in the Underlying Process....Pages 115-176
From Business Shifts to Jump Processes....Pages 177-179
Preliminary Conclusion....Pages 181-182
Front Matter....Pages 183-183
Introduction and Related Work....Pages 185-186
Patent Risk as an Option to Litigate....Pages 187-219
Preliminary Conclusion....Pages 221-222
Conclusion....Pages 223-224
Back Matter....Pages 225-278
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