Real Options In The Management Of Emerging Biotechnology Applications

Emerging technology is changing market, economy and society, Traditional methods about strategic plan, finance analysis, organize design and marketing get challenge directly being up against emerging technology. Some characteristics such as uncertainty and complexity of emerging technology make managing emerging technology front line, so we eager to new management methods supply and surpass traditional management. Managing emerging technology needs far different thoughts, skill and way, Researcher and manager suppose to find out best methods of emerging technology management, but all of that need discovery because of characteristics emerging technology. Real options thinking is one of methods of reducing uncertainty of management. Valuing investment of emerging technology is based on catching hold of series options being created by future chance of development. This paper suggests that real options thinking and methods are importance in managing emerging technology as well as development and characteristics of emerging technology, and emphasizing on modern biotechnology, we go deep into discuss application of real options thinking and methods of valuation in management of emerging technology.Firstly, this paper introduces background and methods of research, concept and characteristics about real options; we review application of real options in terms of emerging technology management at present. In chapter two, we discuss character of emerging technology and difference from hi-tech, new technology, high-new technology and traditional technology, and then we analyze uncertainty of market, technology and management about emerging technology and discuss how real options thinking applies to emerging technology. Moreover, we focus on management of modern biotechnology which is dominant economy in 21st century. Biotechnology is different character from information technology, what skill and way of management do we need? In chapter three, we study uncertainty of biotechnology and information technology comparatively, and suggest that traditional analytical method is unsuitable and provide frame of real options thinking in biotechnology management. Valuing...