Abstract
In this paper, we apply a dynamic option-game framework to examine the impact of information time lag on Research and Development (R&D) investment in innovative information technology (IT) industry. We focus on incentives of competition and coordination in R&D. Our results show that shorter information time lag may induce firms to coordinate their investments and avoid over-investment. The threshold of information time lag developed in this paper can facilitate managerial decisions on whether to compete or coordinate R&D investments.
Original language | English (US) |
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Pages (from-to) | 241-251 |
Number of pages | 11 |
Journal | Information Technology and Management |
Volume | 12 |
Issue number | 3 |
DOIs | |
State | Published - Sep 2011 |
All Science Journal Classification (ASJC) codes
- Information Systems
- Communication
- Business, Management and Accounting (miscellaneous)